Bank of Japan (BOJ) Governor Kuroda gave a sppech in Japan on Monday afternoon (Mike had the headlines here). The Wall Street Journal had a recap of it overnight, focusing on an expected ‘speed bump’ in Japanese inflation:

  • Private economists expect that Japanese inflation (as measured by the BOJ’s preferred gauge, the core CPI) will slow from here as a boost from the yen’s past weakness has run its course, and that this means the BOJ will ease further in order to to meet its 2% inflation target

However, says the Journal, Kuroda suggested that was not the case:

  • The core index is “expected to slow to around 1%” through the summer before accelerating again
  • He reiterated his mantra that the core inflation will stay “around 1.25%” for some time

“By making it clear that ’1%’ would be within the definition of ‘around 1.25%,’ Mr. Kuroda signaled that he won’t do anything” even if the index moves closer to the 1% mark, said Yoshimasa Maruyama, a senior policy analyst at Itochu Corp.

The article is ungated, if you want to read further.

Expectations of further easing from the BOJ have been scaled back, and this latest from Kuroda further nailing that door shut (for the time being, at least).

Oh, and one more thing … given it’s a dip in inflation we’re looking for I would have called it an inflation pot hole, not a speed bump (if we’re sticking with the road metaphor).