"Though Kuroda has pledged to achieve 2% inflation, given Japan's reality, this is an extremely tough goal"
- Mikihiro Matsuoka, chief economist at Deutsche Securities Inc.
Japan's industrial production improved for a third consecutive month, suggesting a weaker Yen and gains in share prices helped improve firms' production activity. According to the Ministry of Economy, Trade and Industry, the nation's industrial production rose 0.6% in February, revised data showed on Monday. The figure compared with an initial reading of a 0.1% drop and a 0.3% gain in January. The report also showed that a gauge of capacity utilisation rose 0.7% in February from a month earlier to 86.6.
Also Monday, the Bank of Japan Governor Haruhiko Kuroda said during Tokyo meeting that the nation's economy is showing signs of picking up. He also assured that the 2% inflation target will be achieved in a two-year horizon.
"Though Kuroda has pledged to achieve 2% inflation, given Japan's reality, this is an extremely tough goal" and Abe is aware of that, said Mikihiro Matsuoka, chief economist at Deutsche Securities Inc. in Tokyo. "Under the target, the BOJ will keep expanding stimulus and its actions will help to weaken the yen, boost profits and stimulate economic growth - that's what Abe may want to see ultimately."
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