Japan's Cabinet Office submitted its latest medium-to-long term economic and fiscal projections today
- Optimistic scenario shows inflation to reach 2% in 2H of fiscal year 2021
- Previously expected in 2H of fiscal year 2020
- Baseline scenario for growth is to reach nominal growth of 1.5% to 1.9%
- Real growth expected to reach just over 1%
The optimism surrounding Japan's ability to reach its inflation target is fading, well not like it was ever there in the first place. But yeah, it's only a matter of time before reality hits the BOJ and we can finally put to bed any talks of the inflation target being achieved in fiscal year 2019.
