After the pandemic, the short run will probably see a deflationary bust. Will it be followed by rampant inflation?
When the growth engine slows down, income levels for corporates and households are adversely impacted
In this edition of Big Story, Moneycontrol's Sakshi Batra decodes the latest wholesale price data released by the government.
"Japan's economy is battling a crisis, so the priority now is to use all available means to put it on a recovery path," Abe told parliament.
While a rate cut by itself will not solve sector specific issues, a rate cut along with the right communication and cues on liquidity could go a long way in boosting confidence given the current context.
Former BOJ Deputy Governor Kazumasa Iwata criticised the central bank's price forecasts as too optimistic and warned that even hitting 1 percent inflation could be challenging given a recent batch of weak price data.
The International Monetary Fund highlighted concerns over price movements and public debt as it noted the mixed record of Prime Minister Shinzo Abe's growth plan dubbed Abenomics.
"We will put the highest priority on the economy," Abe said at his new-year press conference.
The move to withdraw high-denomination notes is expected to dent immediate consumption in the medium-term, but will have a positive impact on growth and inflation in the long run, says Kumaresh Ramakrishnan, Head-Fixed Income at DHFL Pramerica Mutual Fund.
Shares in the company climbed as much as 4 percent after market researcher Kantar Worldpanel said Tesco's sales grew by 2.2 percent year-on-year in the 12 weeks to Nov. 6, boosting its share of Britain's grocery market to 28.2 percent from 27.9 percent this time last year.
The global weakness is mainly due to the pressure in the German banking sector which led to a decline in Dax by 2 percent, Nick Parsons, National Australia Bank says. Also the upcoming US presidential debate and the OPEC meet have also caused jitters among investors.
In a bid to end two decades of debilitating deflation, Kuroda began a huge money-printing programme when he took office in 2013, tied to a two-year target to push inflation to 2 percent.
Madhu Kela of Reliance Capital, who called the bottom of the market around its 6,800 lows in February, added that near-term returns, especially in stocks that have bounced sharply since (such as public sector banks), may be subdued.
The wholesale price index (WPI) for May came in at 0.79 percent year-on-year, compared to 0.34 percent in April, showing the second straight month where signs of industrial inflation have emerged, following 15 months of declining prices.
A clear recovery economic and earnings is finally visible and growth is at an inflexion point, says Ridham Desai, Head of Equity Research & India Equity Strategist at Morgan Stanley.
In an article posted on the website of Project Syndicate, he said the 'hopes' and 'fears' of global leaders at the IMF-World Bank Spring Meetings in Washington centre around China as its failure and success carry risks for the world economy.
On average for advanced economies, the IMF said in its new Fiscal Monitor report, "public debt now exceeds the level observed during the Great Depression and is approaching the level immediately after World War II."
The ECB slashed already record-low interest rates, prepared to pump massive new sums into the banking system and, for the first time, said it would start buying corporate bonds.
Lipstick shades are kissing off Japan's short-lived economic recovery, and fashion industry hues are turning as sombre as a central banker after another ineffectual splurge of money printing.
This is unlikely to be repeated, particularly since tax revenue from the oil sector is now fairly static to oil price changes due to the specific nature of the taxes. Deflation also derailed the disinvestment program, as most PSUs shorlisted were from the commodity and infra sectors, affected by deflation.
Motilal Oswal believes this deflationary trend is likely to continue in FY17 as well, thus impacting tax revenues once again
The data underscores the challenges premier Shinzo Abe faces in dragging the economy out of stagnation, as exports to emerging markets fail to gain enough momentum to make up for soft domestic demand.
Analysts and economists largely viewed the Federal Open Market Committee's post-meeting statement Wednesday as dovish, fueled by nods toward market volatility and expressions of concern that long-awaited signs of inflation remain elusive.
Billionaire financier George Soros sounded downbeat about the global economy. He said it was going to be a difficult year and that the balance was to the downside
Banks extended 597.8 billion yuan (USD 90.76 billion) of new loans in the final month of 2015, less than expected and down from 708.9 billion in November, data showed on Friday.