Baton passing to fiscal policy as BoJ reluctant to ease

The Bank of Japan today pushed back the timing for hitting its inflation target and sounded alarmed about the recent moderation in price pressures, but nonetheless refrained from providing more stimulus. While we still think that further cuts in the policy rate are more likely than not, the onus on boosting demand is increasingly shifting towards fiscal policy.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.