Japan's Nikkei asks "Is Japan's deflation era ending?"
<p><a href="https://asia.nikkei.com/Economy/Inflation/Is-Japan-s-deflation-era-ending" target="_blank" rel="nofollow">Link is here</a> to the piece (may be gated).</p><p>Some of the points made:</p><ul><li>Recent comments by Bank of Japan and government officials are stirring expectations the Japanese economy is finally nearing a turning point where it can declare victory over deflation and the central bank can shift away from a decade of massive stimulus.
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Since the BOJ relaxed its yield curve control (YCC) policy on July 28 to allow government bonds to move in a wider band, a string of officials have hinted at the beginning of the end of the bank's ultraloose strategy.
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A government declaration that Japan's long deflation period is over could give the central bank a freer hand to tighten policy.
"Legally speaking, the BOJ operates independently from the government, but it is possible that the two will move in close step," said Hideo Kumano, chief economist at Dai-ichi Life Research Institute.</li></ul><p>The Bank of Japan statement is due tomorrow, Friday, 22 September 2023. Some time in the 0230 to 0330 GMT is the best bet.</p><p>While expectations of any change from the BoJ are low the timing of this article is interesting. </p>
This article was written by Eamonn Sheridan at www.forexlive.com.
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