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.