More Houses in Japan May Actually Drag Down Inflation

Kuroda called the investment increase a sign policy is working.

Rising housing investment is a sign that the Bank of Japan’s negative-rate policy is working, according to Bank of Japan Governor Haruhiko Kuroda. But it also has a lot to do with tax changes, and ironically, the increasing supply of new homes might drag down Japan’s inflation rate, the opposite of what Kuroda wants.

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