TOKYO--(BUSINESS WIRE)--Pacific Chiba Trust have noted that the economy of Japan is on the move, with more active retail investors coming from North America & Europe to gain exposure to the Asia-pacific region at the company.
Economist at Pacific Chiba Trust are attributing the increase in Core CPI to the higher energy prices from the same period in 2016.
Head of Mergers & Acquisitions Louis Hunter at Pacific Chiba Trust explained that “most of the retailers haven’t increased the prices of their goods because they didn’t want to scare cost sensitive customers, and most of the retailors achieved growth by keeping the wages low.”
Charles Harper who is the Head of Corporate Finance at Pacific Chiba Trust said that “The positive economic cycle hasn’t started yet and he expects Bank of Japan to keep their very low interest rate unchanged for the near future.”
The Bank of Japan has kept the interest rates close to zero since 1999 and recently signalled that the economic stimulus will remain until the target inflation is achieved. Analysts have predicted a reduction in the plan because of the rise of the inflation.
Analysts expected the Core CPI to increase by 0.4 percent, and Tokyo CPI, which is released a month before the National CPI, to be flat but the data released on Friday showed an increase of 0.1 percent.
Bank of Japans Inflation Target is 2.0 percent and with the expected lower energy prices in the second half while economic numbers released on Thursday revealed a fifth quarter increase in GDP, the strongest growth since 2006 thanks to the increase in exports and the businesses spending.
However the low consumer spending and corporates of fear of increased prices are still looming, forcing the Bank of Japan to rethink its monetary policy to tackle deflation in the long term.
About Pacific Chiba Trust
Pacific Chiba Trust is a private wealth management company that provides both private and corporate clients access to the global financial markets.