- 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