NewsMine — economy — asia — Viewing Item

Bank of japan predicts continued deflation Original Source Link: (May no longer be active)    http://mdn.mainichi.co.jp/news/20031027p2a00m0bu014001c.html http://mdn.mainichi.co.jp/news/20031027p2a00m0bu014001c.html Bank of Japan officials predict continued deflation in 2004 Japan's deflationary trends will continue through the next business year, as the consumer price index (CPI) will probably stay below zero, the Bank of Japan (BOJ) said on Monday. In talks with the Mainichi, BOJ officials said they would mention the continuation of deflationary trends in a biannual prospect report on the economy to be released Friday. In response to deflation, the BOJ will stick to its policy of maintaining interest rates at levels near zero in a bid to prop up the economy, the officials said. They pledged to maintain the zero interest policy until the CPI reaches zero percent or above, and said that recent economic data show that both company profits and stock prices have risen due to expectations that the downward trend would come to an end. Japan's CPI also climbed to minus 0.1 percent in August, so private sector sources expect prices to go up within 2003. But the BOJ officials believe that the deflationary trends on prices, excluding those of perishable foods, would continue in fiscal 2004 for its seventh straight year since 1998. They base their belief on the fact that hikes in cigarettes tax and increased coverage by individuals of medical costs triggered the reduction of price falls seen in August. They also argue that rice price increases likely to occur later this year because of a bad harvest during the summer would help boost the CPI, if only temporarily. In the biannual report, nine BOJ Policy Board members mention their individual prospects for the economy. The overall prospect for the CPI in fiscal 2004, after excluding two extreme and polarized opinions regarding the indexes, will probably stay below zero, the officials said. Their prospects for the CPI in fiscal 2003, published in the April economic report, was minus 0.4 to minus 0.5 percent. (Mainichi Shimbun, Japan, Oct. 27, 2003)

Asia bankers gear up china stock deals { August 28 2003 } Asian stocks slide india halted { April 2004 } Bank of japan predicts continued deflation China gdp 20 percent bigger than expected { December 13 2005 } China losing protections for poor { January 15 2006 } China raises interest rates for first time in 9 years China replaces us { June 28 2002 } China says 2005 surplus near 102 billion China toy sweat shops China widens role in latin america { November 20 2004 } Downgrade for japanese economy Economic damage seen in asia after terror Foreign direct investment in china hits records India buys 1b in asian bonds Japan 18yr low { September 2 2002 } Japan 19yr low Japan europe concerned for dollar slide Japan markets two days plunge { January 19 2006 } Japan pursuing weak yen policy { August 27 2003 } Japan vm prefers bonds local currency { August 15 2003 } Japanese stocks plunge april 2005 { April 18 2005 } Japanese yen gains against dollar Rural healthcare dies as china wealth grows { January 14 2006 } Tokyo nikkei 20 yr low { April 11 2003 } Tokyo stocks fall 5 percent Files Listed: 25

Correction/submissions

CIA FOIA Archive

National Security Archives

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information, go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purpose of your own that go beyond 'fair use', you must obtain permission from the copyright owner.