BOJ Could Face Monetary Policy Dilemma in 2019
Tokyo, Jan. 1 (Jiji Press)--The Japanese economy headed into 2019 amid increasing concerns over a global slowdown stemming partly from U.S.-China trade friction, possibly placing the Bank of Japan in a monetary policy dilemma.
Following global financial market turmoil in late 2018, hopes may spread for additional monetary easing by the BOJ to prevent deceleration of the domestic economy, which is believed to have matched the post-World War II record growth run of six years and a month, from February 2002 and February 2008.
"The global economy has already entered a slowdown phase," Takashi Miwa, chief economist at Nomura Securities Co., said.
Furthermore, the Japanese government is slated to raise the consumption tax rate from the current 8 pct to 10 pct in October 2029, which may dampen consumer spending.
The BOJ "could be pressed to loosen monetary policy further," a former BOJ official said.
[Copyright The Jiji Press, Ltd.]