Bank of Japan's Kuroda: Japan core consumer prices likely to fall for time being

The Bank of Japan's Haruhiko Kuroda says Japan core consumer prices likely to fall for time being, but turn positive and accelerate the pace of increase thereafter.

He said that the pace of Japan’s economic recovery likely to be modest as caution over pandemic remains 
downward pressure on service consumption likely to continue.

“As a whole, the recovery is being sustained as business sentiment improves for three straight quarters,” even though some service industries remain under pressure, he said recently.

Reuters noted that ''Japan’s economy has emerged from last year’s slump caused by the pandemic, though analysts expect any recovery to be modest as slow vaccine rollouts and soft consumption cloud the outlook.''

There has been no market reaction to the comments while the yen firms below the 109 level:

• USD/JPY is testing the bull's grit at the 109 level