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BOJ Sees Bigger Chance of Fall in CPI Below 1%
The Bank of Japan now sees a much bigger possibility of inflation slipping below 1%, pushed down by falling crude oil prices, according to people familiar with the central bank’s thinking, a development that could rekindle market speculation for additional easing. While the BOJ recognizes that lower oil prices are ultimately good for the economy as they reduce living costs from imported food to gasoline, the central bank is concerned about their effect over the shorter term. Viewed from the perspective of the bank’s goal to achieve stable inflation of 2% in about two years, the lower crude prices will likely ... (full story)