Deflation Hit: Japan’s PM pushes businesses to do more

TOKYO: Japan’s prime minister and central bank governor on Thursday applied fresh pressure on companies to do their part in putting a sustained end to deflation by boosting wages and investment. The head of Japan’s biggest business lobby, however, offered only conditional support. Kuroda also said the Bank of Japan (BOJ) remains “unwavering” in its determination to do whatever it takes to hit its 2% inflation target, suggesting his readiness to expand monetary stimulus if risks threaten a broad uptrend in prices. Despite assurances by Kuroda that Japan’s economic prospects are bright, many companies still sit on a huge pile of cash because of uncertainties over the external outlook and a shrinking domestic market as the country’s population ages rapidly.

Published in The Express Tribune, December 25^th, 2015.

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