Free Trial

MNI BRIEF: BOJ Not Concerned By Price 2nd-Round Effects

(MNI) Tokyo

The BOJ isn’t concerned about the second-round effects of higher consumer price index and a subsequent rise in the expected inflation rate, Seiichi Shimizu, director-general of the BOJ’s Monetary Affairs Department, told lawmakers earlier Tuesday.

Shimizu said cost-push, not demand, was the main reason behind the recent rise in crude oil price and that will not trigger inflation hitting the 2% price target in a stable manner that the BOJ aims

His remarks underline that the BOJ will not unwind easy policy to deal with higher consumer prices, differing from the Fed, ECB and BOE, all currently paying great attention to the second-round effects.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.