Japan Inc. has little faith in the central bank's latest shift in monetary policy, with companies saying it will not generate long-desired inflation, spur further business investment or have an impact on the economy.
The findings of the Reuters Corporate Survey — the first broad survey on Japanese companies' reaction to the policy change — suggest a long road ahead for Prime Minister Shinzo Abe as he seeks to pull an economy out of more than 15 years of deflation and stagnation.
More than 80 percent of firms said last month's overhaul in policy — one that targets the bond market's yield curve instead of the amount of money pumped into the financial system — will not have an impact on prices or change their capital spending plans.