After Japan's inflation in January was stronger than expected, Japan's long road to fighting deflation is finally coming to a successful end? This Saturday** quoted people familiar with the matter as sayingJapan** is discussing a formal declaration that the economy has overcome deflation.
According to people familiar with the matter, Japan** will carefully study the results of this spring's collective labor talks, also known as "spring fighting", and the inflation outlook to determine whether Japan has the conditions to declare a complete transition away from deflation.
It is worth noting that this official statement, although only symbolic, is notBut it would mean that a major growth bottleneck for the Japanese economy has been removed.
Japanese Prime Minister Fumio Kishida or a member of his cabinet may later make this statement publicly at ** meetings and press conferences, and mention it in the monthly economic report.
The market is focused on once Japan announces that it has overcome deflationThe timing of the next BoJ rate hike will be in focus, which would be its first rate hike since 2007.
However, Bank of Japan Governor Kazuo Ueda recently "poured cold water" on him, saying that the inflation target has not yet been achieved, and the central bank will continue to confirm "whether a virtuous circle between wages and prices is beginning to form". He also stressed that he would pay attention to the results of the spring fightIt is expected that this will be the key to confirming whether the economy is in a virtuous circle. Kazuo Ueda said he had reason to believe that the wage negotiations would yield a positive outcome.