IMF expects to achieve Japan’s inflation target
Speaking of the International Monetary Fund, Japan shows the purpose of inflation prescribed by the Central Bank, which is 2 % sustainable, as strong use and capitalism is likely to support the economy.
IMF said in a statement released after the annual consultation with Japan on Wednesday.
“The risks of growth will be reduced, but usually the risk of inflation is balanced,” said the announcement, the possibility of slowing down the global economy and the negative risks of economic growth are weak.
The announcement of the fund issued in Washington before the announcement of global mutual customs duties on Wednesday, US President Donald Trump did not address the impact of the 24 per cent tax imposed by the United States on imports from Japan.
The main inflation rate in Japan has exceeded 3.7 percent in February and the Central Bank of Japan’s goal exceeds almost three years, as high food costs are severely affected by families. The fund believes that if the high costs of food and energy are positive losses to inflation, it is likely to decrease in the future, and that inflation in Japan will help the Central Bank of Japan’s goal.
At the conclusion of consultation with Japan, the executive directors of the monetary fund have asked Japan to withdraw cash support if the Japanese economy occurs in accordance with the Japan’s economy. The Bank of Japan has asked the Bank of Japan to continue to rely on data and its flexibility and to maintain its clear conversation in raising interest rates due to uncertainty about the “neutral” interest rate in Japan, which does not reduce growth.
The International Monetary Fund is expected to increase by 1.2 percent in 2025 in 2025, after increased by 0.1 percent in 2024, which supports the gains of strong companies and high -level opportunities. The total inflation is expected to fall to 2.4 % in 2025 in 2025 last year.
The Bank of Japan has emerged from the economic inspiration program last year for over a decade and raised interest rates in January to 0.5 percent, believing that Japan’s inflation target is going to be a steady manner. Bank of Japan’s governor, Kajo Oida and the bank will continue to increase the cost of borrowing if the bank reinforces the continuous wage, and companies have allowed companies to raise prices.
In a special case, a business survey published on Wednesday saw the stagnation of the services sector in Japan last March, but the private sector’s operations were down at a rapid pace for more than two years.
The slowdown in the services sector is a great concern for the world’s fourth largest economy, which depends on the growth of growth and replacing some decline as a result of the failure of the manufacturing sector.
The Japanese Services Activity Index issued by a bank or Zipone fell to a neutral level at 50.0 points in March, with the highest level in February to 53.7 in February, skipping the starting reading of 49.5 points, according to Standard & Poor Intelligence Intelligence. It separates 50.0 level between the expansion and contraction.
“After strong performance in the first two months of the year, business activities in the Japanese services sector have seen a recession in March, where companies have suggested that market conditions have improved,” said Annabel Fedis, Assistant Director of Economics in Standard & Poor’s Global Market Intelligence.
According to the study, the increase in new demands in the second consecutive month has slowed down its lowest level since last November. Although growth has slowed compared to the past month, new exports continue to thank for strong demand from China and Taiwan.
Fedis said the estimates of companies next year were strong, but optimism from January 2021 was down to its lowest level, which would be concerned about the lack of employment, population aging and uncertainty about global trade.
Japanese companies are concerned that President Donald Trump’s wave of customs imposed on his commercial partners will lead to a wider global economic slowdown.
Meanwhile, input price inflation has increased rapidly in 19 months, as participants in the study are high costs of employment, raw materials and fuel along with exchange rates. Production prices have fallen to their lowest level in five months.
Pillars Procurement Manager Index, which combines manufacturing and services, declined to 48.9 points in March, from 52.0 points in February, the first contraction from last October.
