Out on BBG. BOJ governor speaking in Tokyo
- stock prices generally reflect future profit expectation
- prices won’t rise inconsistently or in non-linear way
- will adjust policy if seeing a deviation from path to target
- BOJ’s large of purchases of JGBs have kept 10 year yields low
10year yields have fallen to 0.59% today, lowest since March 4
Add:
- important to continue with QE as long as necessary for maintaining price stability target of 2%
- tightening labour market conditions have started to influence wages in Japan
- inflation to start rising again from 2H FY2014 and reach 2% in middle of projection period
- Japanese growth to return above potential from the summer
- front-loading in demand prior to sales tax hike was quite substantial
Nothing new that I can see through early morning eyes. USDJPY suitably becalmed at 101.85 still
