Economics
Japan’s Inflation Obsession Fades in Effort to Cope With Virus
- Some see crisis as the beginning of the end for 2% target
- Conversation shifts to national emergency as inflation slides
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The Bank of Japan has long tried and failed to hit its target of 2% annual inflation, but the coronavirus means the topic has faded from conversation in a sign a permanent shift in priorities is possibly underway.
Governor Haruhiko Kuroda skipped mentioning inflation in a speech earlier this month, and the bank last month omitted its customary pledge for more action on the price target. Now, some economists say this may be the beginning of the end for “price momentum” as the key test for BOJ monetary policy.