BoJ Gov Kuroda: Japan's consumer inflation likely to accelerate near 1% towards the middle of next year

The Bank of Japan's governor, Haruhiko Kuroda, stated the following comments:

Japan's economic recovery is delayed somewhat.

Stagnation in Japan's consumption has been prolonged.

Exports, output hovering on a weak note.

Service consumption to remain under pressure from covid, temporary slowdown in exports, output likely to continue.

The mechanism for Japan's economic recovery remains in place.

BoJ will take additional easing steps without hesitation as needed, with an eye on the pandemic's impact on the economy.

Japan's economic recovery is likely to become clearer in 1st half of next year.

Japan's economy is likely to recover levels seen in 2019 in 1st half of next year.

Demand for precautionary liquidity has eased substantially.

Corporate funding strain appears to have become limited to sectors still suffering from weak sales, small and medium-sized firms.

BoJ will maintain powerful monetary easing as inflation is projected to miss the 2% target for time being.

Japan's consumer inflation is likely to gradually accelerate to around 1% towards mid-next year.

Inflation expectations of households, firms rebounding, wage growth accelerating mainly among sectors suffering from labour shortages.

There have been no market reactions to the comments that followed data earlier in the day as follows:

Japan's GDP translated into a quarterly drop of 0.8%

About Kuroda

Haruhiko Kuroda, is the 31st and current Governor of the Bank of Japan. He was formerly the President of the Asian Development Bank from 1 February 2005 to 18 March 2013.