FXStreet (Mumbai) – Bank of Japan (BOJ) board member Ishida is crossing the wires via Reuters warning markets to watch out for risks emerging for Japan’s financial system as a result of QQE while raising concerns over exports and production recovery during summer.
Key Headlines:
Watching for accumulating risks from easy policy
Cycle from income to spending to work steadily
Export, production recovery after summer vital
Don’t see signs of huge financial imbalances, excessive risk-taking building up for now
Don’t think it is appropriate to strip away food costs in gauging Japan price trend as food makes up a quarter of households’ total spending
Expects overseas economies to recover gradually
Must be vigilant to heightening disinflationary trend, build-up of excessive slack in China
Emerging economies somewhat weakening with China’s slowdown weighing on other Asian economies
Inflation seen accelerating towards BOJ’s 2% target as underlying price trend steadily improves
Risks to Japan’s economic outlook are mostly from overseas developments such as emerging economies, Europe’s debt woes and pace of US recovery
(Market News Provided by FXstreet)