- BOJ and government joint statement is mutual understanding on policy roles to end deflation
- Statement shows govt understands BOJ alone can’t end deflation
- Board members Sato, Kiuchi, disagreed with BOJ view in semi annual report that CPI to approach 1% in fiscal 2014
- Sato, Kiuchi argued for change in wording on BOJ commitment to ultra-easy policy
- Strongly expects govt to support economic growth with deregulation
- Funds offered under new loan scheme can be used for lending both at home and overseas
- BOJ does not respond automatically to market expectations of monetary policy
- No decision yet on how long new loan scheme will last
- Want to map out details of new loans scheme by end of this year
- Achieving 1% inflation will remain key in BOJ policies even beyond 2014
- Biggest change in outlook is that slowdown in overseas economies is worse than expected
- Joint BOJ-govt statement was first to be issued since revised BOJ law went into effect
- No set formula in gauging whether 1% inflation is foreseen
Don’t know where he comes up with 15 trln, thought it was 11 trln……
