I posted the Bank of Japan Tankan follow-up earlier, ie. part 2 of the survey results: the Corporate Price Expectations survey
Reuters have a bit of a recap up now:
- Japanese companies' long-term inflation expectations weakened in March from three months ago
- Reinforces market doubts over the BOJ argument that monetary stimulus will nudge firms into boosting spending on expectations of future increases in prices
- "Inflation expectations for three- and five-years ahead have never heightened since the BOJ began compiling this survey," said Yasunari Ueno, chief market economist at Mizuho Securities. "It's clear the BOJ's attempt to drive up inflation expectations with bold monetary easing has failed."
- The BOJ is expected to cut its consumer inflation forecasts at its rate review later this month, though many central bank policymakers are reluctant to top up stimulus after having just deployed negative interest rates in January
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Related: ... MNI say that the downward revision of corporate medium-term inflation expectations adds to the likelihood the BOJ will expand its easy policy at the April meeting.
