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.