Central Banks


BOJ governor Haruhiko Kuroda on the wires

  • BOJ does not set any deadline for hitting inflation target
  • Removal of language on timeframe for hitting inflation target doesn’t change its nature
  • No change to pledge to hit inflation target at earliest date possible
  • Important to focus on difference between real and nominal interest rates
  • Private consumption has been increasing moderately
  • Need to consider level of real interest rates when assessing BOJ policy
  • Domestic demand is likely to follow upward trend
  • If real interest rates fall as inflation expectations rise, stimulative effect of BOJ’s policy becomes stronger
  • No sign of excessive bullish expectations in markets, financial market activity
  • Deflationary mindset is deeper than expected
  • Japan’s economy moving on a steady path towards inflation target
  • Sees no critical problem in financial intermediation at this point
  • Negative impact from 2019 sales tax hike to be smaller than the one in 2014
  • As Japan’s growth potential rises, natural rate of interest will rise
  • Uncertainty over US protectionist trade policy is a risk factor
Well, he sure has a lot to say on the day but overall, nothing new here from Kuroda. Mainly reiterating his previous points and goes in tandem with the summary of opinions released earlier in the day here.



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