What a day … been flat out like a lizard drinking.

But, I wanted to post this from the Nikkei Wall Street Journal (may be gated) … Tokyo Eases Inflation Pressure on BOJ

It relates to Amari’s comments from yesterday, well, it expands on them. Bolding mine:

  • Prime Minister Shinzo Abe ’s administration is dialing down its pressure on the Bank of Japan to do whatever it takes to generate stable inflation quickly.
  • The shift in the government’s position reflects the growing realization that more time will be needed to overcome deflation when plunging oil prices are putting downward pressure on inflation around the world
  • The more tempered view also indicates growing concern within the government that another round of easing could further weaken the yen ahead of local elections
  • Voter resentment over the adverse effects of the softer currency on smaller regional businesses and economies could be a factor that spoils Mr. Abe’s successful run of election landslides
  • The government appears eager to avoid the possibility of Bank of Japan (BOJ) Governor Kuroda’s feeling compelled to take further action quickly
  • Japan’s economy minister said Tuesday that the central bank wasn’t constrained by its rough two-year time target, pointing to falling energy prices as a factor that would likely delay efforts to reach the target
  • “Neither the government nor the BOJ has clearly made a rigid commitment to a deadline,” Economy Minister Akira Amari said, adding that it was fine to allow the bank to take longer to reach the inflation goal in response to economic conditions

This is important, nothing more from the BOJ for some time to come, if at all.