Comments from Bank of Japan board member Takehiro Sato

From his speech: Recent Economic and Financial Developments and Monetary Policy in Japan

  • Recent decline in commodities is due partly to demand-side factors
  • Difficult to expect energy price recovery in short term
  • There are signs of deflationary pressure from asset prices in China
  • Europe' debt problem could come in focus again due to lack of plans to reduce sovereign debt
  • Concerned about fiscal position of oil producing countries
  • Need to monitor rising costs of dollar funding for Japanese banks
  • Need to monitor risks of financial market instability during times of low liquidity
  • Want to monitor whether or not yield curve flattening will harm ECB's government debt buying
  • Japan's virtuous cycle from income to spending continues to work
  • Japanese companies still have negative stance towards increasing investment

Headlines via Reuters

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Via Bloomberg:

  • Japan economic data relatively weak in past two quarters
  • Shift from deflationary mindset gradually being achieved
  • Japan CPI has statistical problems unlike in Europe and US

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Sato is speaking in Narnia. Srsly. Narnia! Go figure.

Oh, no. Sorry. Speaking in Nara. My bad.

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ps. Sato has a press conference to follow, due at 0500GMT