BOJ's Ishida: recovery on track even if GDP falls after tax hike

mardi 25 février 2014

A pedestrian holding an umbrella to take shelter from rain and hail walks past the Bank of Japan headquarters building in Tokyo Japan's recovery will remain on track even if the economy contracts in the second quarter after sales tax is raised on April 1, a Bank of Japan board member said on Wednesday. In a sign of reluctance to ease policy further, Koji Ishida said the Bank of Japan (BOJ) should be careful in its economic assessment because data in the first half of fiscal 2014 will be more volatile due to the tax hike itself, suggesting the central bank will not be easily swayed by a temporary slowdown. Ishida's comments, which are in line with the BOJ's standard assessment, may weaken speculation that the central bank will offer additional stimulus this year due to doubts about the economy after the sales tax increase.








via Business News - Yahoo Finance http://ift.tt/1euP01w

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