BOJ Gov. Kuroda says Japanese CPI is likely to fall back under 2% next fiscal year

Bank of Japan Governor Kuroda

• Japan's economy picking up
• Japan's economy likely to recover as impact of supply constraints, pandemic eases
• Japan's economy likely to recover as impact of supply constraints, pandemic eases
• Uncertainty regarding Japan's economy extremely high
• Must be vigilant to impact of fx, market moves on economy, prices
• BOJ will maintain easy monetary policy to sustainably, stably achieve 2% inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term accompanied by wage growth
• Japan's consumer inflation likely to slow back below 2% next fiscal year

• Japan's consumer inflation recently exceeded 2% but that is almost entirely driven by firms passing on rising import costs to consumers

• Must leave room for policy response to ensure japan never returns to deflation

• We may be seeing slight signs of changes in firms' cautious sentiment that was behind prolonged deflation

• rapid, one-sided forex moves are not desirable

• BOJ policy decisions take into account various factors, including the impact of forex moves on the economy

---

Nothing in these comments indicate a change in policy from the BOJ is coming any time soon.

ps. Japan's fiscal year begins on April 1.