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Japan still hunts for sustained inflation

On Thursday, Japan's Finance Minister Taro Aso told that higher inflation could assist the government in repaying debt as the country keeps pushing a 2% inflation objective for the Bank of Japan notwithstanding missing such aims five times since it started aggressive easing in April 2013.

The Bank of Japan is under the previous governor Shirakawa resisted the objective as it thought 2% turned to be harder to achieve.

Prime Minister Shinzo Abe got back to power in December 2012, leading his party to a landslide victory in Lower House elections with a promise to correct the Japanese yen's excessive strength, cope with deflation and also revive the national economy under stable 2% inflation.

Still, Japan's growth potential still remains close to zero notwithstanding the government's reflationary policy mix known as Abenomics, that relies mostly on aggressive monetary easing given the limited scope for large fiscal spending as well as slow progress on structural reforms.

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