(MENAFN) Japan's inflation rate is expected to decrease in the next fiscal year, which could probably force the Bank of Japan to launch more stimulus later in the year, Gulf News reported.
Japan, which has been grappling with either outright deflation or very low inflation for decades, is facing an even greater challenge than some other economies given the 60 percent plunge in oil prices over the past six months.
The BOJ surprised financial markets last October by expanding an already massive asset purchase program, but the effect on inflation has been negligible so far. The economy unexpectedly slipped into recession in the third quarter of last year, as consumption was knocked by a sales tax hike in April.
A senior at Mizuho Research Institute said that as the BOJ has showed lower prices are positive for the economy in a medium- to long-term, our main scenario is the central bank will wait and see.
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