Bank of Japan Governor Kuroda
Speaking to a branch manager meeting
- Japan’s economy expanding moderately
- Japan’s economy expected to continue expanding moderately
- Consumer inflation moving around 1 pct
- Japan’s financial system maintaining stability
- BOJ will maintain qqe with yield curve control for as long as needed to achieve 2 pct inflation in stable manner
- BOJ will continue expanding monetary base until consumer inflation stably exceeds 2 pct
- BOJ will keep short-, long-term interest rates at current very low levels for an extended period
- BOJ will adjust monetary policy as needed to maintain economy’s momentum to achieve its price target
- BOJ will guide monetary policy appropriately with eye on risks
K’s remark on inflation around 1% … that doesn’t sound great given the target is 2%, but it is a higher rate than the BOJ is accustomed to.
Kuroda will not be unhappy about the ‘improvement’. The fact he has even mentioned a number is sign he is a little more optimistic.