Bank of Japan Deputy Governor Hiroshi Nakaso (who obviously does not care that I'm trying to post on the Aussie CPI :-D )

Speaking at a meeting with business leaders in Hiroshima:

  • Will pursue current monetary easing to meet price stability target
  • Japan's economy is expanding moderately, supported by overseas economies and increase in domestic demand
  • Biggest risk to japan are developments in overseas economies
  • Recent developments in prices have been weak, but we can expect to see a turnaround
  • Prices of daily goods likely to rise gradually as consumption increases and yen depreciation pushes up import prices
  • Output gap expected to widen further in positive territory, lead to higher wages and prices
  • Inflation expectations expected to rise, expect CPI to increase toward 2 pct
  • Some firms are cutting back services to avoid passing on rise in labour costs

more to come

Nakaso is the one with less hair.