Japan Gives Downbeat Forecast, Warns of Deflation

[mserve id=”Central_Bank_BOJ.jpeg” align=”left” width=”400″ caption=”Bank of Japan” alt=”Central Bank of Japan BOJ” title=”Bank of Japan”]

Japan’s government on Wednesday warned that deflation and high job losses could hurt a fragile recovery, maintaining a downbeat assessment of the economy in January.

In a monthly report, the government reiterated that it will work with the Bank of Japan to beat deflation and ensure an economic recovery, keeping pressure on the central bank to maintain its ultra-loose monetary policy.

“We must watch various risks as the economy could suffer a double dip or hit a soft patch ahead,” Keisuke Tsumura, a parliamentary secretary of the Cabinet Office in charge of compiling the report, told a news conference.

source CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza