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Bank of Japan sticks to easing, raises inflation forecast

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Good decision. Japan's core inflation minus energy is still way below the target, and the headline inflation number is largely based on the abnormal global supply chain, which is expected to normalize in the next couple of years. Employers remain stingy as always, undercutting economic growth.

Japan is once again proving it's "different."

-22 ( +3 / -25 )

While Japan seeks an inflation rate of 2% many will say its hasn't just been achieved, but when looking at their grocery bill or other expenses, they think say its well beyond it.

But inflation is has many factors in the measure, and by far one of the largest is real estate prices (land, housing, commercial property). For regular people, this is usually their largest asset class and/or their largest single expenditure (about 30% of income).

Housing and land, as a whole, is losing value constantly in Japan and has been doing so for 25 years. Sure, new apartments in downtown Tokyo have gotten a bit more pricy in the past decade (though nothing like NY or other major world cities), but the rest of the market is sinking and there is no bottom (not only are homes in the countryside being given away for free, some people will actually pay a "buyer" to take it from them so the owner is no longer liable for the property tax).

This absolutely huge pull down on the economy needs to then be offset in an equally big way to create an inflation uptick in overall inflation. (so a 10 or 15% hike in food and other consumer goods results in only a 1 or 2% overall inflation rate).

Too bad articles like this never mention the housing drain and its affect on inflation.

14 ( +16 / -2 )

These monetary easing policies are intended to achieve sustained two-percent inflation, a target the bank considers key for stable growth.

The QE Universal Basic Income for bankers is too important for Japan Inc. , now matter how much the public suffers due to inflation.

The interests of the LDP, BOJ and Japan Inc. are not congruent with the great majority of the working public.

8 ( +13 / -5 )

The rising inflation is the result of a controlled demolition to the world’s economy. The agenda is to crash the world’s economy so the WEF guys/elites can usher the world into the Great Reset that will ultimately lead to a one world government. We are living in perilous times. We are at the last hour.

8 ( +14 / -6 )

Policymakers have refused to move away measures put in place a decade ago as the BOJ battles to achieve sustained price rises in the world's third-largest economy.

A decade ago? Battles to achieve sustained price rises? But not wage rises? Third largest economy in the world but a plummeting lifestyle for those living in it.

8 ( +13 / -5 )

Bank of Japan dug its heels in on its easy-money policies

That’s maybe valid for a very few who already swim in megatons of that printed easy money. For most of you and me it’s just the aggressive escalation of the difficult-than-never-before money policy.

10 ( +10 / -0 )

"Inflation in Japan is driven predominantly by higher prices for imported food and energy, which are beyond the BOJ's reach."

Not true. The inaction of the BOJ leads to a weaker JPY which means higher prices for imported goods.

14 ( +16 / -2 )

Policymakers have refused to move away measures put in place a decade ago.....

A decade ago? Battles to achieve sustained price rises? But not wage rises? Third largest economy in the world but a plummeting lifestyle for those living in it.

Precisely...the sooner Kuroda is out the door the better. Luckily it will be soon.

8 ( +13 / -5 )

Japan is the only country in the industrialized world that does not include the price of fuel and food in their GDP…. So the BOJ needs to stop pushing that as an excuse for inflation…. If they actually included fiuel/food we have instant hyperinflation….::

12 ( +15 / -3 )

Yes BoJ! Let's make the rich even much richer, and the poor even much poorer!

5 ( +10 / -5 )

"Battles to achieve sustained price rises? But not wage rises? 

The BOJ does not control wages. Its job is to maintain stable prices and full employment.

-11 ( +0 / -11 )

Totally ridiculous. Yen will soon be worth way less. They want inflation to try and inflate some of the colossal debt away. These people should be locked up

4 ( +7 / -3 )

This absolutely huge pull down on the economy needs to then be offset in an equally big way to create an inflation uptick in overall inflation. (so a 10 or 15% hike in food and other consumer goods results in only a 1 or 2% overall inflation rate).

Reasonable real estate price (accompanied by very low mortage rates) has also a good side.

It is easier for people to buy the place they live in. This is particularly true for young people.

in US and Europe the crazy real estate bubble prices make it impossible for young people to buy. This is quite unfair.

3 ( +4 / -1 )

This absolutely huge pull down on the economy needs to then be offset in an equally big way to create an inflation uptick in overall inflation. (so a 10 or 15% hike in food and other consumer goods results in only a 1 or 2% overall inflation rate)

sorry I did not type properly

Reasonable real estate price (accompanied by very low mortage rates) has also a good side.

It is easier for people to buy the place they live in. This is particularly true for young people.

in US and Europe the crazy real estate bubble prices make it impossible for young people to buy. This is quite unfair.

1 ( +2 / -1 )

Today there was an inflation reading for Japan and actually, it went down from 2.5% to 2.4%

-3 ( +1 / -4 )

correct me if im wrong but didnt the BOJ exclude volatile items like oil and food in their inflation calculations!?

4 ( +4 / -0 )

Well, given that salaries haven’t budged for almost 15 years, I do not see me buying anything unnecessary for the time being.

All I keep hearing is how great this will be when some companies repatriate their money. Good for them. It won’t boost consumer spending. Never understood how businesses or the government seem to think that consumers aren’t also workers.

3 ( +3 / -0 )

So.... Bitcoin anyone?

-1 ( +3 / -4 )

"Higher rates would do little to meaningfully change the situation", Stefan Angrick, senior economist at Moody's Analytics, told AFP. "Inflation in Japan is driven predominantly by higher prices for imported food and energy, which are beyond the BOJ's reach."

????? The guy is contradicting himself there. Imported goods, food energy are more expensive than they need to be because they are paid for in foreign currencies like Dollar or Euro making them ridiculously expensive due to the weak Yen exchange rate. If the BOJ would change their policy and raise interest rates the Yen becamse stronger and those imports would become cheaper. So this is well within BOJ's reach.

4 ( +4 / -0 )

It’s the right choice. Europe just upped their interest rate, Fed did and will do more in America, and did it help so far? No, it didn’t. It will just add to the misery of the normal people when the interest rates goes up.

-3 ( +2 / -5 )

Dullards. Watch the Yen crash even further. It's not like tourists can come here easily to reap any benefit of it.

Investors will look and send their cash elsewhere.

1 ( +5 / -4 )

It’s the right choice. Europe just upped their interest rate, Fed did and will do more in America, and did it help so far? No, it didn’t. It will just add to the misery of the normal people when the interest rates goes up.

Effect of higher interest rates on inflation is not instantaneous . ECB just started to hike yesterday ! (and US only started a few months ago)

What is sure is that if you do not raise rates in countries with 8% inflation, inflation will increase more and more. So no choice. And inflation is much more painfull for modest people because they spend most of their money on food and energy (this is only a small part of their spending for wealthy people). This is a very unfair tax that must absolutely been stopped asap.

Higher interest rates may not be enough but it will contribute.

0 ( +0 / -0 )

Rate hike is not a mean for defending Yen?

So, what will be the plan? Let it drop to 150 to USD and everyone will be enjoying he “benefits” of cheap Yen?

Just out of my imagination

0 ( +0 / -0 )

It’s the right choice. Europe just upped their interest rate,

Yeah, they upped it from negative 0.5% to 0%.

So instead of paying someone to borrow, now its just free to borrow.

0 ( +0 / -0 )

correct me if im wrong but didnt the BOJ exclude volatile items like oil and food in their inflation calculations!?

Yes they did because it will drive up the numbers and they won't be able

to boast having the lowest inflation among OECD countries. This pattern is evident

with unemployment data, Covid numbers and a large number of other data.

I have made it as a rule of thumb to take the numbers with a bag of salt.

2 ( +3 / -1 )

Why do anything to help the people if they're going to keep re-electing these heartless-plenty-of-money-in-their-pockets greaseballs who appoint these no good bankers to mishandle our money?

Inflation is no big deal if you're not poor. They need to open their eyes and see that this country is building up a bigger and bigger class of barely-getting-bys.

0 ( +4 / -4 )

If you haven't seen it, I highly recommend watching Princes of the Yen to understand the Bank of Japan's role in crashing the economy after the '80s bubble...

https://www.youtube.com/watch?v=p5Ac7ap_MAY

Might be best to start buying gold because I would not assume they are going to help...

3 ( +4 / -1 )

This is folly, probably more indicative of Japan's complete incompetence at managing it own economy. They have duf their own grave with yield curve control and now are completely stuck. Wages won't rise because unless the goverment bumps it busines won't and if they do they may loose their competitive edge, that said if the yen remains this week they may have no choice. Just another example of the citizens getting screwed, taxed through the nose for healthcare and pension for the old golden generation at the expense of the youth. Not only do young people have no income no job stability and rubbish hours now they have the added tax of inflation, maybe if they incentivise workers with more money for more hours they might actually get better results instead of treating their workforce like slaves.

2 ( +2 / -0 )

Paying tax on my food on top of the ever rising prices is extremely infuriating.....

1 ( +3 / -2 )

Their already been a casualty in Germany,and gas company failure, Ukrainain and Russian shook hands on grain deal Google German Energy Bailouts

0 ( +0 / -0 )

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