BOJ Minutes Note Rising Global and Local Inflation Risks
Asian Economy Written by CEP News May 23 08
(CEP News) - Members of the Bank of Japan's monetary policy board noted that inflation expectations were rising both at home and globally, and carried upside risks, according to the minutes from the Monetary Policy Board's meeting, which took place on April 8 and 9. "On the price front, international commodity prices showed the following developments: crude oil prices had been high; prices of nonferrous metals had also generally been high; and prices of crops such as wheat had been on an increasing trend, due to the ongoing rise in demand for alternative energy sources and the effect of droughts in major production areas, but they had lately showed a slight decrease," read the minutes.
Consequently, some members suggested that an increase in prices would have a dampening impact on consumer spending.
Members also agreed that downside risks to the U।S. economy were rising, with some expecting an earlier-than-foreseen rebound in the world's largest economy.
By Erik Kevin Franco, efranco@economincnews.caThis , edited by Cristina Markham, cmarkham@economicnews.caThis
Asian Economy Written by CEP News May 23 08
(CEP News) - Members of the Bank of Japan's monetary policy board noted that inflation expectations were rising both at home and globally, and carried upside risks, according to the minutes from the Monetary Policy Board's meeting, which took place on April 8 and 9. "On the price front, international commodity prices showed the following developments: crude oil prices had been high; prices of nonferrous metals had also generally been high; and prices of crops such as wheat had been on an increasing trend, due to the ongoing rise in demand for alternative energy sources and the effect of droughts in major production areas, but they had lately showed a slight decrease," read the minutes.
Consequently, some members suggested that an increase in prices would have a dampening impact on consumer spending.
Members also agreed that downside risks to the U।S. economy were rising, with some expecting an earlier-than-foreseen rebound in the world's largest economy.
By Erik Kevin Franco, efranco@economincnews.caThis , edited by Cristina Markham, cmarkham@economicnews.caThis
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