Monthly report (January) – Bank of Japan
Despite the presence of spare capacity and demand slack, corporate goods prices in Japan would remain constant for the time, the Bank of Japan said in its Monthly Report of Recent Economic and Financial Developments. This was because of the rise in commodity prices, particularly petroleum, which was seen to exert upwards pressure on prices.
The effects of loose monetary policy had been dulled by the low level of economic activity and profits, but the "degree of constraint" exerted by the latter
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