Ryan had the story in the Wall Street Journal overnight here: Bank of Japan sees greater risk of inflation falling below 1% – WSJ:
- BOJ now sees a much bigger possibility of inflation slipping below 1%, pushed down by falling crude oil prices, according to people familiar with the central bank’s thinking
- BOJ recognizes that lower oil prices are ultimately good for the economy as they reduce living costs from imported food to gasoline, (but) is concerned about their effect over the shorter term.
Link to the (ungated) Journal article
The next BOJ policy meeting is on October 31. Current thinking is ‘no change’ from them, despite this talk about concern on the lower oil price and its impact on inflation.
(Gotta say… I reckon the BOJ is more concerned with core inflation rather than the volatile CPI with energy included. Just like other central banks.)