After BOJ coup, Abe faces more economy challenges
Fri Apr 5, 9:32 AM UTC
TOKYO (AP) — Japan's Prime Minister Shinzo Abe scored his biggest coup since coming to power late last year, with the central bank's decision to overhaul its monetary policy to attain a 2 percent inflation target within two years.
By soaking the economy with money, the BOJ hopes to get corporations and consumers to spend more, ending a long malaise. Its announcement delighted Abe and financial markets. The Nikkei 225 stock index surged past the 13,000-level Friday for the first time in over four years.
Now Abe is about to find out that bending central bankers to his will was the easy part of jolting Japan's economy out of its two decade slump. Attention is turning to the toughest part of his program: reforms to make the economy more competitive.