Bloomberg: World’s Biggest Pension Fund Doubts BOJ Can Achieve 2% Inflation

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Takahiro Mitani, president of the 112 trillion yen ($1.14 trillion) Japanese Government Pension Investment Fund said the BOJ ‘probably promised too much’ when it set a goal of lifting inflation to 2 percent within two years.

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“It’s going to be very difficult,” Mitani said. “The BOJ think that if they say they will take bold measures to bring about inflation, then inflation expectations will rise and as a result prices will rise. But reality isn’t that smooth. Even in the bubble, inflation was only about 1 percent.”


Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.


All|Asia Pacific

Government Pension Investment Fund|Japan|Takahiro Mitani

Eamonn Sheridan


  1. Eamonn,

    you just come up with the most amazing perspectives

    Sakakibara is on the same page, right?………i think you posted that a while back.

  2. don’t always get what what I want but I DO know it when i see it, Eamonn

    with all this conflict of opinion arising in the ivory towers of central banking from BIS on down i am wondering if the NSA hasn’t already dropped LSD into the kool aide served up at the private meeting held in Switzerland.

    and, Carney may have already been fixed too. imagine that.

    you are high flyer in my book

    S&P getting close to the fail safe line, but read the insiders are buying

  3. Eamonn,

    since you and i are obviously on such good terms and the same page more or less, MF for short is fine….hope you see the humor in that

    looks like the Nikki is struggling with the 13,400 number……..

    i am wondering what is going on behind the scenes?

    if the DOJ gets nasty with a big Swiss bank things could get freaky in a hurry

  4. Thanks MF – just reading up on the DOJ/Swiss thing

  5. i think it is exactly like Gundlack said about not knowing what these people are doing and probably more to point they don’t know what they are doing either.

    there is obviously something taking place behind the scenes ……….all of this with the FOMC 180 and then BIS tonight and the DOJ/Swiss thing is not a coincidence

    more here than meets the eye, imo for what that is worth..

  6. The question is, does it really matter if the 2% target isn’t hit? Couldn’t any figure above zero be pencilled in as a win?

  7. loved your intense posts Schubes……..takes a lot of guts to put it out there like you did. with style too.

    interesting angle you bring with the point about the 2% what if target……….can you clarify?…..need to get up to speed, if you don’t mind sharing inside thinking.


  8. Thanks @Miss September. Im glad readers enjoyed them.
    What I mean about 2% not mattering all that much is that in an economy suffering more-or-less twenty years of deflation, any inflation would be an improvement. The target of 2% seems arbitrary to me. Inflation full stop is the first goal. You also need to avoid the wrong breakdown of inflation (not to mention stagflation and lots of other bogeymen), but that just makes the 2% target all the more irrelevant. Near term, just get it above zero without a major balls-up. Even if there is some success, I think the market may be disappointed because Mr Abe has over-hyped his plan to win himself an election. Not that I’d be disappointed to see another politician get what he deserves (assuming he loses government if Abenomics proves to be a bit of a fizzer), but hype makes it hard to get good news accross nevertheless.
    We might need @pip on this one. How are the sound trucks today?


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