Central Banks

BOJ governor Kuroda’s presser begins

  • Growth momentum to continue into fiscal year 2019 to 2020
  • Inflation momentum to continue faster towards 2%
  • Likely inflation will reach 2% around fiscal year 2019
  • Downside risks to prices are higher from fiscal year 2019 onwards
  • No change in BOJ’s view for projected timing for target
  • Remains committed to achieve 2% target at earliest possible time
  • There is a view that timeframe for inflation target was a limit implying immediate policy change
  • Timeframe was always just a forecast, not a firm limit
  • Focus on timeframe was not good for communication

He’s more or less reading off the statement at the moment. Look out for questions later about the removal of the reference on the inflation target timing.

Okay, he’s saying now that there is no change to the BOJ’s view on inflation reaching the 2% target by fiscal year 2019. But if so, then why remove that reference? Hmm.

He also says that dissenter Kataoka wanted the timetable for hitting the 2% inflation target kept in the outlook report.

Alright, he’s providing some clarification to that now. He says that they changed the language to emphasise that the fiscal year 2019 timeframe is a forecast, not a limit.

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