Lower oil prices hurting BoJ’s drive for inflation – Investec

FXStreet (Barcelona) - Jonathan Pryor, Head of FX dealing at Investec, shares the comments of Abe’s advisor Hamada that BoJ needs to switch to an inflation gauge with strips out energy, and also extend the time to achieve its inflation target.

Key Quotes

“In Japan, Prime Minister Abe's advisor Hamada reiterated that the Bank of Japan, who had targeted reaching 2% inflation in 2 years after many years of deflation, need to switch to an inflation gauge that strips out energy and possibly extend the timeframe for achieving the 2% target to 3 years.”

“Lower energy prices driven by lower oil prices have hurt the Bank of Japan's drive for inflation, and held up the advance of the US Dollar against the Japanese Yen.”