BOJ’S Shirai :
- Says positive cycle of output, income, expenditure likely to continue in Japan
- Downside risks subsiding somewhat but still need to be mindful of them
- Japan prices likely to gradually rise around Q4 of 2014
- Will take some time for medium-, long-term inflation expectations of households to rise as a trend
- Downside risks on Japan price outlook subsiding somewhat, but still need monitoring
- Must scrutinise economy, price moves after second sales tax hike to see whether 2% inflation will be sustained stably
- My economy, price forecasts are made on assumption QQE will be maintained beyond 2015
- Feel Japan will need more than 2 years to achieve 2% inflation under current flexible inflation targeting
- CPI likely to reach 2% in middle of projection period, assessment on risks to Japan prices tilted to downside
- Japan consumers will need time to get accustomed to an economy with sustained rises in prices
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Headlines courtesy of Reuters
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At 0500GMT Shirai will follow up her speech with a press conference
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Yen continuing its slow strengthening move today on the speech … USD/JPY is back to overnight lows
