- MarketPulse - https://www.marketpulse.com -

2% Inflation May Not Be Enough For Japan’s Woes

Even if Japanese policy makers manage to pull off 2 percent inflation within their two year target, it may not be enough to save the struggling economy, Capital Economics has warned.

Japanese policy makers have this year embarked on an ambitious plan to overhaul the economy, which for decades has been dogged by high levels of public debt and deflation. The three-pronged strategy has involved aggressive monetary easing, along with fiscal stimulus and structural reform.

So far, Prime Minister Shinzo Abe’s plan does seem to be gaining traction. Gross domestic product rose an annualized 3.8 percent in the second quarter of 2013, following a 4.1 percent rise in the first quarter.

Meanwhile, Japan’s core consumer price index (CPI) climbed 0.7 percent on year in September, the fourth consecutive monthly rise.

CNBC [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Mingze Wu

Mingze Wu [6]

Currency Analyst at Market Pulse [7]
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu
Mingze Wu

+Mingze Wu [10]