Due to lower demand in Asia, the Bank of Japan expects a drop in industrial output within the period from April to June. Industrial production gained 1.5% in the fourth quarter as compared to the previous quarter. This confirms the growth of the third largest economy in the world.
According to a monthly report published by the Bank of Japan, industrial production growth would be moderate, reflecting domestic and foreign demand.
After the conference in June, the Bank of Japan decided to maintain its previous monetary policy due to a slowdown in the country’s consumer prices for fuel.
With fuel prices declining since mid-2014, the inflation rate in Japan decreases, and in 2015 zero growth of consumer prices is expected. In April, a rise by 0.3% was recorded in consumer prices (excluding fuel and food products), as compared to April 2014. However, if we take into account the previous year’s tax hike, there was no growth at all, despite the fact that the first value was 2.2% in March, and the second amounted to 2%.
The country’s central bank plans to reach its desired 2% target in the first half of fiscal year 2016.
