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MNI DATA IMPACT: BOJ Mar Tankan Shows Improved Outlook

--Firms 1-Yr Infln Rate Outlook at 0.4% Vs. 0.3% in December

--Firms 3-Yr Infln Outlook 0.8%; 0.7% in Dec, 5-Yr Infln Rate 1.0% v 0.9%


Both short and long-term inflation expectations at Japanese firms rose slightly in the three months to March, easing the Bank of Japan's concern over a weaker view of inflation among corporates, the latest Bank of Japan Tankan survey showed.

On average, companies saw the annual consumer inflation rate at 0.4% a year from now, up from 0.3% in December. They also saw a 0.8% rise three years out and a 1.0% rise five years ahead, up from +0.7% and +0.9%, respectively in the December survey.

The BOJ has previously admitted that momentum toward achieving its 2% price target has been temporarily lost, with consumer prices expected to be negative for some time.

The survey, conducted from February 25 to March 31, showed companies on average expect sales prices to rise 0.2% a year from now, up from -0.1% in December. They saw an increase of 0.9% three years ahead, up from +0.6% in December and they saw an increase of 1.5% five years ahead, up from 1.3% in December.

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