Coming up in the global economy this week, euro-area inflation may have picked up in November from a four-year low the prior month, demand for U.S. durable goods excluding transportation equipment probably improved for the first time in four months and the Brazilian central bank will probably increase its benchmark interest rate. Elsewhere, strikes by auto and mine workers probably caused South Africa’s economy to slow last quarter, while Sweden’s rebounded after shrinking from April through June.
Half a year after Bank of Japan Governor Haruhiko Kuroda unleashed record monetary easing, economists see the bank failing to meet its inflation target, underscoring the case for stronger steps to revive the economy.
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.
Japanese Economy Minister Seiji Maehara said the country needs more monetary easing and policy efforts to encourage growth as the government prepares for election against an opposition that has stronger public support.