Bank of Japan Deputy Governor Masazumi Wakatabe speaking:

  • BOJ will maintain massive stimulus to nudge up prices to 2 pct target
  • BOJ must scrutinise impact of policy on markets, financial system
  • various external risks exist for Japan's economy, notably fate of Sino-US trade friction
  • expect inflation to gradually accelerate as economy continues expansionary trend
  • there is a risk wages, prices may not rise much
  • next year's scheduled sales tax hike is also risk factor for Japan's economy, prices
  • price falls undesirable as they would leave central banks with little room to deploy conventional monetary policy tools
  • japan may revert to deflation if its economy comes under downward pressure again
  • BOJ's monetary policy does not directly target FX but setting 2%t inflation target helps stabilise FX market

His message is on script - maintaining stimulus, yen a touch weaker after comments.