BOJ’s Nakaso: Will pursue current monetary easing to meet price stability target
|Bank of Japan (BOJ) Deputy Governor Hiroshi Nakaso is on the wires now, via Reuters, speaking at a meeting with business leaders in Hiroshima.
Key Points:
Still long way to go to meet 2% inflation target
Will pursue current monetary easing to meet price stability target
Japan's economy is expanding moderately, supported by overseas economies and increase in domestic demand
Biggest risk to Japan are developments in overseas economies
Recent developments in prices have been weak, but we can expect to see a turnaround
Prices of daily goods likely to rise gradually as consumption increases and yen depreciation pushes up import prices
Output gap expected to widen further in positive territory, lead to higher wages and prices
Inflation expectations expected to rise, expect CPI to increase toward 2 pct
Some firms are cutting back services to avoid passing on rise in labour costs
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