TOKYO (Reuters) — Japanese wholesale prices fell at their fastest rate since 2002, March figures showed on Monday, as weakening domestic demand on top of falling commodity prices led to worries about deflation.
With interest rates already nearly zero, analysts say the Bank of Japan has limited weapons to fight deflation in the country’s worst recession since World War II.
The Bank of Japan “has reached its limit in terms of conventional monetary policy moves,” said Norihiro Fujito, general manager at Mitsubishi UFJ Securities.nytimes.com
