Speech by Ryuzo Miyao, Member of the BOJ Policy Board, at a meeting with business leaders in Nagasaki.
(Note – Miyao voted in favour of further easing back on October 31)
- Japan Economy recovering moderately as a trend
- Inflation has been slowing recently
- Consumption remains firm
- industrial production is weak due to inventory adjustments
More (via Reuters):
- Sees high chance inflation to meet 2 pct target around Fiscal year 2015
- Expect inflation to accelerate heading into second half of Fiscal year 2015 as output gap improves
- If slowing inflation continues even in short term, this could delay switch from deflation mindset
- Extending average duration of JGB purchases to push rates lower along yield curve
- Risks of asset bubble contained as supply-side measures being taken to improve competitiveness
- Do not think boj’s additional easing has made it more difficult to exit QE
- Additional easing increases chance of achieving price target in balanced manner
- High chance BOJ can start debating exit strategy in second half of Fiscal year 2015 when price target expected to be reached
- Additional easing was response to increasing downside risks to prices
- Strongly expect govt to make necessary structural reforms to improve competitiveness
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At 0500GMT Miyao follows up with a press conference
