Financial Times FT.com

Japan ducks action on deflation

By Mure Dickie

Published: October 29 2009 17:06 | Last updated: October 29 2009 17:06

Most discussion about the Bank of Japan’s intentions ahead of Friday’s policy board meeting has focused on whether the central bank will signal an unwinding of special measures introduced to ease corporate credit conditions after the global financial crisis hit the world’s second largest economy last year.

Mere hints of such a move earlier this month prompted Shizuka Kamei, the outspoken financial services minister and a leader of a minor party in the ruling coalition, to accuse the central bank of “talking in its sleep”.

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