BoJ Gov Kuroda: Global commodity price rise is much bigger factor than weak yen in pushing up japan's consumer inflation

Reuters reported that the Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank must maintain ultra-loose monetary policy, while keeping an eye on the risk that inflation accelerates before wages begin to rise.

''Speaking in parliament, Kuroda also said he did not think Japan was experiencing an "abnormal" weak yen that pushes up import costs excessively, stressing that recent rising living costs were driven mostly by higher commodity and energy costs.''

Key notes

Global commodity price rise is much bigger factor than weak yen in pushing up japan's consumer inflation.

Main firms are still reluctant to pass on rising costs to consumers, as seen in modest rise in consumer inflation.

Must create cycle in which rising corporate profits, expansion in economy leads to rises in both prices and wages.

BoJ will continue easy monetary policy so economic recovery pushes up wages and leads to gradual rise in consumer inflation.

Must continue current easy policy while keeping eye out on risk inflation accelerates before wages start to rise.

Japan isn't experiencing 'abnormal' weak yen that is pushing up import prices excessively.