The Bank of Japan won’t take additional measures to counteract the negative effects of oil prices on inflation, according to a report from Bloomberg.
They cite ‘people familiar with the discussions’.
For now, policy makers assess that while cheaper energy costs may weigh on consumer prices for a time, they ultimately will boost the economy — spurring inflation, the people said, asking not to be named as the talks are private.
BOJ board member Takehiro Sato made a comment earlier this month that might reflect the thinking there, and perhaps in the US on the impact of falling prices. He said this month that lower oil prices would exert downward pressure on inflation, but in the longer term they would have positive economic effects.
