FXStreet (Mumbai) – Bank of Japan (BOJ) Governor Haruhiko Kuroda is now crossing the wires via Reuters, talking up on the Japanese economic outlook. He notes that Japan’s fundamentals remain strong and sees demand improving.
Key Quotes:
Bank of Japan has ability, strong determination to achieve 2 pct inflation at earliest date possible
Japan economic fundamentals are strong
Corporate and household sectors have improved a lot compared to a few years ago
Going slow in trying to achieve 2 pct inflation will only make wage adjustment gradual
Japan CPI rise likely to accelerate toward 2%
Japan’s price trend improving steadily
China, other emerging markets clearly slowing, which is weighing on Japan exports
Bank of Japan must be first one to act to dispel deflationary mindset, which is why it has promoted QQE
July-sept GDP shows Japan’s final demand is growing
Companies have maintained bullish capex plans
Price trend improving not just because of weak Yen but because more firms are raising prices of their goods amid improving job conditions
There is uncertainty on outlook for china’s economy and how much any pickup in its growth could help other east Asian economies
Inflation to reach 2 pct around latter half of fiscal 2016
Expect Japan to grow above its potential heading into next fiscal year
Must be mindful of risk uncertainty surrounding emering economies could hurt Japan business confidence
Bank of Japan won’t hesitate acting if needed to
achieve 2 pct inflation at earliest date possible
Weak Yen is pushing up import prices, but price gains are spreading to broad range of goods
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