There are different effects of the lower oil price on Japan's economy. BoJ staff have weighted them and determined that the net of them will threaten to move in

There are different effects of the lower oil price on Japan's economy. BoJ staff have weighted them and determined that the net of them will threaten to move inflation growth off target. How is the growth of inflation threatened? The BoJ thinks business confidence in Japan will drop because of recessions in trading partners. This is why it is responding with a policy that will hopefully be more aggressive in pursuing higher inflation and GDP to offset the foreign developments. In BoJ's own words in point two in the press release: http://www.boj.or.jp/en/announcements/release_2016/k160129a.pdf http://www.boj.or.jp/en/announcements/release_2016/k160129a....