Japanese and South Korean industrial output was less than estimates in March and Taiwan’s first-quarter growth was half the forecast pace as weakness in global demand limits recoveries in Asian economies.
As the Bank of Japan prepares to boost its inflation forecasts this week, analysts from Goldman Sachs Group Inc. to JPMorgan Chase & Co. say the estimates may themselves be used as a tool for ending deflation.
The Bank of Japan is considering boosting its consumer-price outlook to signal confidence it will meet a pledge to achieve 2 percent inflation in two years, people familiar with the central bank’s discussions said.
Bank of Japan Governor Haruhiko Kuroda gave himself two years to do “whatever it takes” to end deflation and revive the world’s third-largest economy. He may have less than half that time to produce results.
Haruhiko Kuroda said that the Bank of Japan will do whatever is needed to end 15 years of deflation should he be confirmed as governor and indicated that open-ended asset purchases could start sooner than next year.
Bank of Japan governor nominee Haruhiko Kuroda said that the central bank will consider buying derivatives if he’s confirmed as governor and signaled a readiness for a quick expansion in monetary stimulus.
Haruhiko Kuroda will appear before parliament again even if he’s confirmed this week as Bank of Japan governor as a technicality in the nomination process means lawmakers will vote twice on his candidacy.