• BOJ can stick to existing policy

Dep gov press conference just coming out on rtrs

  • sees downside risks to Japanese economy as relatively small
  • can maintain existing policy as on track still for price goal
  • BOJ will take appropriate action if risks appear
  • Net, not gross, size of BOJ’s asset holdings determine the effect of its monetary stimulus
  • can not say how long inflation needs to stay at 2% to judge that BOJ’s price goal is met in a stable manner
  • Japan’s rising output shows current price rises are driven by rising demand, not just by weak yen
  • BOJ has factored in the likelihood of 2-stage increase in sales tax when it eased policy in April last year

Nothing new here

USDJPY suitably unimpressed at 101.57 still