BOJ governor Kuroda still on it as he speaks at his confirmation hearing at the upper house in parliament
- Reaction after 2014 sales tax hike was bigger than expected
- Expects economy to continue expansion even after 2019 sales tax hike
- Expects firms to become more positive on price-setting stance from now on
- Natural for nominal wages to grow 3% or more when 2% inflation target is met
- BOJ easing has helped lower unemployment rate
- BOJ easing is to achieve inflation target, not for financing the government
When the government implemented the sales tax hike back on 1 April 2014, it brought about a technical recession in Japan, as the next two quarters saw negative economic growth.
Anyway, as mentioned previously, the timing of the sales tax hike will be one to look out for as it may mess with Kuroda's "personal view" that the inflation target will be met in the fiscal year of 2019.
