Nikkei press overnight in Japan on the BOJ Tankan Corporate Price Expectations survey

The first part of the Tankan was released on Friday, this price expectations survey comes out following (released on Monday), I had the details here

Says the Nikkei:

  • Inflation expectations are falling
  • BOJ acknowledged at its March policy meeting that inflation expectations are weak
  • A lower outlook can weigh on actual inflation by causing businesses to put off investment or households to think twice about spending
  • The BOJ is considering cutting inflation forecasts in its economic outlook report due out April 28
  • BOJ could extend the time frame for achieving 2% inflation, now around the first half of fiscal 2017, by about half a year

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The results yesterday adds to speculation the bank might act again (further easing) in April (the meeting is 27-28), I'd argue they are still in assessment mode after introducing negative rates in January. But, maybe Kuroda will surprise us again.

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(Note, Current BOJ forecasts for inflation are at 0.8% for fiscal 2016 and 1.8% for fiscal 2017)