Japan’s deflation moderated in February even before the country’s worst earthquake on record and an ensuing tsunami and nuclear crisis this month push up energy and food costs.
Japanese machinery orders unexpectedly fell in November, signaling that companies are reluctant to increase spending on factories and equipment because of concern about the strong yen’s effect.
Cash is king for Japanese households as pessimism about the economic outlook grows, threatening to undermine investment and the nation’s recovery.
Bank of Japan Governor Masaaki Shirakawa indicated the nation’s recovery has been resilient to the yen’s advance, supporting his board’s decision to keep policy unchanged today.
The following are the day's top business stories:
Prime Minister Naoto Kan ’s government is stepping up pressure on the Bank of Japan to spur growth as it tries to jump start a slowing economy under threat by a currency at a 15-year high.
Japan’s retail sales declined for the first time this year after a stimulus program ended and the tobacco tax was increased.
What central banks may have the world over is a failure to communicate.
"Sentiment among companies will improve gradually."
- Yoshiki Shinke on Dec 14, 2014