The reverse side of argentina: Japan wants inflation… and not the get! – The Reason (Argentina)

While in Argentina the rise of prices -especially food – is still a problem, the other side of the world, more precisely in Japan, the lack of inflation reveals the local government. In fact, despite having driven a variety of programs to generate increases, the Bank of Japan (BoJ) announced that the asian country will not meet its inflation target of 2 per cent year-on-year to 2018.

In its report on economic prospects, the agency downgraded in a tenth its forecast for the rise in prices during the fiscal year 2018 -in the asian country concludes in April of 2019 – and considered that these would rise up to a maximum of 1.9 percent instead of 2 percent, which was considered in July.

In 2013 the entity established a program of massive purchase of assets to achieve in a period of two years an inflation rate of 2 percent that will close a cycle of falling prices in nearly two decades, but the decline of oil prices has forced the BoJ to delay in at least four years, the achievement of your goal.

With the postponement, the entity, which this year left to plan a specific date for its inflation target, it considers that the 2 per cent will not be a reality during the mandate -which expires in march 2018 – the current governor, Haruhiko Kuroda, the main driver of the expansionary monetary policy of the bank since 2013.

at The same time will continue to apply to certain deposits of banks of a reference rate of-0.1 percent and will expand its portfolio of sovereign debt in japan, where about 80 trillion yen (695.632 million euros) per year to the bond yield japanese 10-year to remain at around 0 percent.

in its report In perspective, the BoJ believes that the third world economy will continue “to grow above its potential” until at least April 2019, thanks to the policy of Government stimulus and the recovery out of the global economy.

Due to the lingering effects of the fall in crude prices, the agency estimated that inflation now stands at 0 percent, even with falling prices, but that will be moving gradually towards the long-awaited increase of 2 percent from the end of 2017.