Further comments by BOJ deputy governor Masazumi Wakatabe
- Seems that downside risks are increasing
- Must consider additional easing if can't hit inflation target in medium, long-term
- Won't comment on what specific monetary easing steps should be taken
- Impact of sales tax hike still somewhat uncertain
- But could affect public's inflation expectations, spending appetite, market sentiment
He's not really painting a bright picture of the Japanese economy here. This follows earlier comments in the day here in which he said Japan could slip back into deflation again if further downside pressure persists in the economy.
Although Wakatabe is quite the dove on the BOJ board, the comments here won't inspire confidence in the outlook for the Japanese economy and for the yen.
