Comments from Bank of Japan (BOJ) Governor Kuroda (preview here):

  • BOJ will check risks and adjust policy as needed

(I think he already demonstrated this on Friday, no?)

Moving on … more:

  • BOJ will make adjustments without hesitation if needed
  • BOJ will continue easing until 2% inflation stable

Headlines on Bloomberg

And, more via Reuters:

  • Japan’s economy continuing to recover moderately as a trend
  • There is no central bank in the world that can achieve 2 pct inflation in exactly 2 yrs
  • Effect of sales tax hike is being prolonged, mainly for sales of durable goods like cars
  • BOJ will do whatever it can to achieve price stability target at earliest possible time
  • Oil price falls are positive for economy in long run, but puts downward pressure on prices in short-term
  • Downward pressure on prices from oil price falls, if persists, may delay public sentiment’s shift away from deflation mindset
  • If a central bank sets a price target without a timeframe, this would not change the actions of households, corp sector
  • Positive economic cycle remains in place, expect Japan’s economy to continue moderate recovery as a trend
  • CPI is still projected to reach aroudn 2 pct in or around fy 2015
  • Aiming for 2 pct inflation has become a global standard
  • Expect household spending to gradually pick up, maintain moderate uptrend
  • Expect capex to increase moderately as a trend as corporate profits continue to improve
  • BOJ does not think inflation is single and ultimate goal
  • QQE exerting intended effects
  • Japan consumer inflation likely to reach 2 pct around fiscal 2015
  • In Japan actual inflation has considerable impact on inflation expectations
  • Decline in commodity prices will be positive for economic activity
  • Must keep eye out on risk that effect of sales tax hike may affect companies’ pricing power
  • Still unsure if decline in commodity prices suggests weak global demand
  • Commodity price falls may be positive for Japan’s economy but must be mindful as a risk if they reflect global economic weakness

Full text: Ensuring Achievement of the Price Stability Target of 2 Percent
Speech at the Kisaragi-kai Meeting in Tokyo (PDF)

If the BOJ had not eased unexpectedly on Friday lst this would be treated as just another speech from Bank of Japan (BOJ) Governor Kuroda, but his words today are attracting extra attention. Ican’t see much in what he is saying as being too much different to what he has said many times.

On the “BOJ will make adjustments without hesitation if needed” I would remind readers that the vote for the extra easing last week was only 5-4. It could not have been any closer. Will he carry the board the next time if he wants further easing? Not a rhetorical question … I have no idea.