Ryutaro Kono
Ryutaro Kono
backs case choice concern deflation depend domestic increase investment plans reluctant revival sales until
A revival in their investment plans backs up the case that deflation is ending. Non- manufacturers have no choice but to depend on domestic sales and until now they have been reluctant to increase investment because of concern about deflation.
beginning companies costs demand early economy gap labor last momentum pass picked pricing retail since supply
Companies are regaining pricing power, and they are beginning to pass manufacturing and labor costs to retail prices. Japan's economy has picked up momentum since early last year, and the gap between supply and demand has narrowed.
bank conditions confirm issue japan judgment month overall policy prices remaining
If the Bank of Japan can confirm one more month of CPI gains, its policy conditions on prices will be satisfied, and the only remaining issue will be its overall judgment of the economy's strength.
action chance change increase month option percent policy rate rates time zero
There is a 60 percent chance for a policy change this month and 40 percent for action in April. In any case, a rate increase won't be an option for the time being, and zero rates will continue.