BoJ’s Iwata says expectations likely to shift as inflation returns

The Bank of Japan
The Bank of Japan

The inflation expectations of Japanese people are likely to shift as inflation rises, helping to reinforce its upward momentum, Bank of Japan deputy governor Kikuo Iwata said on June 22.

Iwata told business leaders in Aomori that part of the reason inflation had persisted at such low levels in Japan is that people tend to base their expectations of future price levels on current inflation. Such a method has been quite accurate in recent years, he admitted, as inflation has remained stuck close

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