BOJ Summary of Opinions: Chance of inflation hitting 2% target next year is low

The Bank of Japan (BOJ) Summar of Opinions at the monetary policy meeting on September 20/21 shows the policy makers believe the odds of inflation hitting the 2% target next year are low.

Key points

Needs to ease policy further to prop up demand given the expected impact on the economy from a scheduled sales tax hike (makes Yen a sitting duck in rising global rate environment).

Careful attention needs to be paid to whether the increasing trend in China's producer price index [PPI] suggests that the worldwide disinflationary trend will change.

No logical reason why North Korea tensions should lead to the appreciation of the Yen.