Euro area faces risk of Japan-style deflation

Bank of Japan policymaker Takehiro Sato warns that the euro area may face a prolonged period of disinflation and could potentially danger slip into a Japan-style deflationary period - EPA Photo.

OITA: The euro area may face a prolonged period of disinflation that risks harming long-term price expectations, a Bank of Japan policymaker said, warning that the region should not take lightly the potential danger of slipping into a Japan-style deflationary period.

Japan, on the other hand, has seen inflation pick up faster than expected, Takehiro Sato said, echoing the BoJ governor's view that there was no need now to offer fresh monetary stimulus.