Soft inflation adds to Japan's economic woes, keeps BOJ under pressure - Reuters
Japan's annual core consumer inflation picked up only slightly in January, keeping the Bank of Japan under pressure to maintain its massive monetary stimulus to support a fragile economy saddled with weak growth and prices.Stubbornly tame inflation is a worry for the world's third-largest economy as it grapples with a coronavirus outbreak and weak growth. The Bank of Japan is in no mood to top up its already huge monetary stimulus, fearing it would have little ammunition to battle the next financial crisis.
However, BOJ Governor Haruhiko Kuroda has said he would consider additional easing if the coronavirus outbreak significantly threatens Japan's economy and inflation, calling the flu-like virus the "biggest uncertainty" for the economy.
