- Excessive yen rises under deflation bad for exports
- Inflation target policy helps lessen hyperinflation fear
- Japanese economy continuing moderate recovery. moving smoothly to end deflation
- BOJ’s QE isn’t intended to rely on rise in import prices backed by yen’s fall to meet price target
- BOJ will take appropriate steps in line with framework of it’s price target should economy overheat and inflation rises above 2%
- Modifying inflation differentials with Japan';s trading partners will lead to adjustment in excessive appreciation of yen
- Rise in inflation after QE is demand pull
- Role of monetary policy is to beat deflation and reach goal
- Raising potential growth rate further is government role, not monetary policy role
- BOJ has high hopes government to progress on growth strategy
- BOJ to keep easing until inflation stable at 2.0%
BOJ’s Kikou Iwata speaking in Tokyo
