Headlines from Bank of Japan (BOJ) Governor Kuroda speaking at a meeting held by the Naigai Josei Chousa Kai (Research Institute of Japan) in Tokyo:

  • BOJ QQE is having the intended effect
  • Japan’s economy is making progress in meeting 2% target
  • Japan’s economy has continued to recover moderately as a trend despite a decline in demand following the consumption tax hike in April
  • Virtuous cycle among production, income, and spending has been continuing
  • Favourable developments in the corporate sector have become more pronounced
  • If inflation expectations are anchored at 2 pct, this will raise potential growth rate due to gains in productivity and capex
  • Tightening of the labour market has exerted upward pressures on wages
  • Efforts needed to raise supply capacity as this will determine potential growth
  • Private consumption continues to remain resilient as a trend
  • Even if there are supply-side constraints in short-term, economy can grow above potential by improving efficiency
  • Effects of decline in real income due to the consumption tax hike might gradually manifest themselves, so BOJ will continue to carefully examine future developments
  • Effects of decline in demand following the consumption tax hike are likely to wane gradually from summer, partly due to expected increase in summer bonuses
  • BOJ strongly hopes government will push ahead with implementation of growth strategy and that private sector responds
  • Structural factors may have also played a certain role in keeping export growth flat
  • Exports have recently more or less leveled off despite the correction of the excessive appreciation of the yen
  • BOJ will continue to pursue monetary policy aiming at achieving 2 pct inflation and anchoring inflation expectations
  • Recently, there have finally been signs that firms are planning to increase the share of domestic investment vs that of overseas investment
  • Japan’s exports are likely to increase moderately due mainly to recovery in overseas economies
  • BOJ does not want inflation at 2 pct temporarily, wants 2 pct inflation on average year after year
  • Japan’s economy is likely to gradually shift to a growth path that sustains the price stability target of 2 percent in a stable manner
  • BOJ will make policy adjustment without hesitation to meet price target if the outlook changes due to the manifestation of some risk factors
  • Some firms starting to raise prices while increasing quality of goods and services
  • Gains in prices show people’s inflation expectations will likely follow upward trend
  • I would like to emphasise that the BOJ will adjust policy if needed to ensure price target is met given its clear and strong commitment to its price target
  • Inflation is increasingly being taken into account in wage negotiations

Headlines via Reuters

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There isn’t anything new in this, is there? I’ve bolded one sentence, but its not as if its really that new. Maybe “I would like to emphasise” is a stronger indication that there could be further easing. Or am I just trying to find something in the comments?