Says the most important issue for the BOJ is downside risks to Japan's economy and prices
- BOJ bias toward further easing
More:
- Most important issue for BOJ that warrants attention is downside risks to Japan's economy, prices
- if risks materialise and pickup of global growth is delayed further, that will undoubtedly have impact on Japan's economy
- BOJ deems it appropriate to guide monetary policy with a bias toward further easing
- BOJ will ease without hesitation if risks heighten that Japan's economy will lose momentum to hit the BOJ's price goal
- BOJ must weigh benefits, costs of any policy step it takes
- BOJ is aware prolonged low interest rates could destabilise financial system
- There are some positive developments seen in US-China trade talks but uncertainty remains
Headlines via Reuters, bolding mine.
More again:
- it may take longer than expected for firms to become more active in capex again if global risks persist
- impact of global slowdown on domestic demand appears limited
- Japan's capex likely to sustain uptrend but could slow for time being as pickup in global growth is delayed
- impact of Oct sales tax hike seems smaller than hike in 2014 but be vigilant as it could change depending on household sentiment, price moves
- Japan's economy likely to continue expanding moderately as a trend
- Japan exports, output likely to remain weak, while domestic demand may slow temporarily due to impact from global slowdown, sales tax hike
- it will take more time for inflation to reach 2%, though inflation likely to gradually heighten toward our target
- Japan sustaining momentum for inflation to accelerate toward 2%
Link to full text here
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The Bank of Japan meet next week (Dec. 18 and 19). Plenty in these comments to indicate the BOJ is considering adding to easing at the meeting. On the other hand there are also plenty to indicate the Bank will remain on hold. Given the history with the BOJ it would seem most likely another no change meeting.
