BOJ deputy governor Iwata: If growth strategy stalls, Japan could have low real growth with mild inflation

Comments from BOJ deputy governor Iwata on the wires now (via Reuters):

• Raising potential growth could worsen output gap temporarily and push down prices
• Strongly expect govt growth strategy to raise Japan’s potential growth rate
• If growth strategy stalls, Japan could have low real growth with mild inflation
• Overcoming deflation would be a great achievement but not enough to revitalise Japan
• monetary easing is indispensable in mitigating deflationary pressure from structural reforms
• BOJ’s QE does not rely on an increase in import prices due to yen depreciation

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Iwata hinting at the danger of stagflation?