Japan’s demand for services fell for a second month in March as companies pared spending at wholesalers and on information and communication.
Japan’s consumer prices fell for a 17th month and household spending rose less than forecast, driving stocks lower on concern that the nation’s economic recovery is faltering.
The Bank of Japan added 10 trillion yen ($118 billion) in liquidity injections after a surge in the nation’s currency to a 15-year high threatened economic growth.
Bank of Japan Deputy Governor Kiyohiko Nishimura said the country’s economic recovery is beginning to stem deflation and the central bank should persist with its accommodative monetary policy.
Prime Minister Shinzo Abe’s policies to boost Japan’s growth and reflate the economy can succeed even if wages don’t immediately accompany price increases, according to Barclays Plc.
Analysts from the 24 primary dealers in the Japanese government bond market comment on Bank of Japan Governor Masaaki Shirakawa ’s performance, in addition to Japan’s struggle with deflation and the power and limitations of monetary policy.