Forbes (January 3)
“By the end of 2024, it was clear average national wages weren’t keeping pace with the rate of inflation…. The BOJ decided on December 19 that Japan isn’t ready to normalize interest rates,” with the official rate remaining 0.25%. This presents “quite a paradox for global investors who’d rushed into Nikkei 225 Stock Average stocks. If the BOJ thinks Japan still requires economic training wheels after all this time, why should they bet on Japan Inc.?”
Tags: 2024, BOJ, Global investors, Inflation rate, Interest rates, Japan Inc., National wages, Nikkei 225, Official rate, Paradox, Training wheels
The Economist (November 9)
“The biggest problem facing the rich world’s central banks today is that inflation is too low. The average inflation rate in the mostly rich-world OECD is 1.5%, down from 2.2% in 2012 and well below central banks’ official targets (typically 2% or just under)…. None of this means that inflation will not one day be a risk. But it is not today’s problem.”
Tags: Central banks, Inflation rate, OECD, Official targets, Risk
