Japan economy minister Amari:

  • Current Japan economy not in state of deflation
  • Can’t formally declare Japan has exited deflation until BOJ’s price target met and there are assurances external shocks won’t push economy back to deflation
  • Too early for BOJ to consider exit strategy like that of the Fed’s tapering as Japan still about to emerge from deflation
  • BOJ has expressed strong determination it will take further easing steps if path toward meeting its price target is delayed
  • If BOJ determines Japan is lagging in meeting its price target, it is likely to decide appropriate steps
  • Machinery orders data is volatile but there are positive data as well so Japan’s economy to continue recovering steadily
  • Up to BOJ to decide on policy direction, moves
  • Government corporate tax cuts will be put in place in time frame of around five years

Headlines via Reuters