Bank of Japan (BOJ) Governor Kuroda speaking in the Japanese Parliament:

  • Japan’s economy is showing some weakness mainly in output but positive cycle remain intact
  • Job, income conditions improving steadily
  • Private consumption solid as a trend with non-durable goods sales emerging from sales tax hike pain
  • Tankan shows many firms expect effect of sales tax hike to be temporary
  • Japan’s economy likely to continue moderate recovery with effect of tax hike seen easing
  • Consumer inflation slowing somewhat due to recent energy price falls but likely to hover around 1-1.5 pct for time being
  • QQE exerting intended effects, japan on steady path toward meeting BOJ’s price target
  • Japan only half way in meeting BOJ’s price target
  • Won’t hesitate to adjust policy should risks threaten achievement of BOJ’s price target
  • Negative yields seen in BOJ’s short-term bill auctions are sign of how powerful effect of BOJ’s monetary easing is
  • BOJ is not trying to guide yields to negative territory, it is only consequence of its stimulus policy

Headlines via Reuters

No new revelations from Kuroda.

There is a BOJ meeting on Friday. No policy change is expected.