Japan Still Not Get rid of Deflation Problems
|
While industrial production in Japan in November year on year growth, the Bank of Japan has opened its quantitative easing off, but the specter of deflation is still hovering over Japan. Yesterday, the Japanese Ministry of Internal Affairs published data show that the core of Japan's November consumer price index (CPI) fell 0.5%, indicating that the problems yet to shake off deflation.
Loose scale or will expand
Weak domestic demand led to falling prices, Japan's core CPI has been straight down there 21 months, after economists expect Japan's core CPI in November increased by 0.6% year on year. In addition, a series of economic data showed Japan's economic recovery remains uncertain. Ministry of Internal Affairs data released yesterday showed a seasonally adjusted basis, Japan's unemployment rate was 5.1% in November, unchanged from last month. November for the Japanese household consumption expenditure per household 284,200 yen, after deducting price factors, down 0.4%.
Japan's deflation has become the main risks facing the economy, the Bank of Japan policy board member Suda said the U.S. sub-vector, April 1 next year began the fiscal year 2011, Japan's price trend will remain down, which made the central bank earlier Japan's economy will maintain a moderate inflation contrary. Bank of Japan announced as early as 10 months to 35 trillion yen loose details of the scheme, the bank also pledged to continue to maintain an accommodative monetary policy until the economy begins to overcome the deflationary pressure in Japan.
Chief economist at Nikko Securities, said the current domestic demand remains weak in Japan, deflation risks remain, which may make the Bank of Japan adjusted expectations of future prices. In addition, the Bank of Japan to ease monetary policy further the possibility of greatly increased.
Bank of Japan recently released in October and November monetary policy meeting minutes showed that some members worried about the Fed's Monetary Policy Committee a new round of quantitative easing policy will bring a higher risk of uncertainty and, if necessary, the bank will consider extending financial assets purchase scale. Some analysts said that as the CPI increase is difficult in the short term, in the fourth quarter of Japan's economy will shrink. Japan to get rid of deflation "vicious circle" still seems powerless.
Some analysts said the Japanese economy is heavily dependent on exports, a strong yen will damage the competitiveness of Japanese exports, the yen continued to rise and the slowdown in economic activity is also interfere with the recovery of prices. Ye Tian Jiayan Japanese Finance Minister, said yesterday that the recent rising trend of the yen showed unilateral, if necessary, the Japanese government will again intervene in currency markets and to take decisive action to suppress the strong yen.
European trading hours yesterday, the dollar fell against the yen, the lowest since the past 6 weeks, after hitting level 82, close to the Japanese government in mid-September before the first level of intervention in currency markets. Some market participants said that although the Japanese government or re-intervention in currency markets, but the market seems to ignore it. If the market focus turned to the Fed policy of quantitative easing, the U.S. dollar against the yen exchange rate is likely to face even greater decline. Japan Finance Minister Wan Hai Tian Jiang reiterated yesterday, the Japanese government wants close cooperation with the Bank of Japan yen to deal with the problem. |
|
Author Resource:-
Chris Holigan a professianl writer from , it provides the high quality products, such as China Oilfield auxiliary equipment, China Oil pumping unit, and many more.
|
By :
Jessie Stone
Submitted
2011-01-01 01:22:44 |
Article From Article Mayhem
 Ezine ready view |
|
|
|
Related Articles
|
|
|
![[Valid RSS feed]](http://www.articlemayhem.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed![[Valid RSS feed]](http://www.articlemayhem.com/images/rss.jpg "XML Feed For RSS")