BOJ policymakers fear price falls

JIJI

Some Bank of Japan policymakers expressed concern about the downside risks for the outlook of prices at a meeting on July 11-12, the minutes of the meeting revealed Tuesday.

The BOJ expects the inflation rate to reach 1 percent in Japan in 2014 at the earliest.

However, the central bank may find it difficult to achieve its price stability goal due to “the possibility of heightened expectations that prices were unlikely to rise, what with the year-on-year rate of change in the CPI (consumer price index) remaining at a low level for a long time, and this in turn could cause a weakening in actual price developments,” the Policy Board said in the meeting.