BoJ’s Kuroda: Necessary to achieve 2% inflation target sustainably, stably in tandem with wage growth

Bank of Japan (BOJ) is speaking at the post-policy meeting conference on Tuesday, commenting on inflation and wage growth outlook.

Key quotes

Sustainable, stable achievement of inflation target should be determined on not just wage figures but also on economic, price trends, underlying mechanism, future outlook.

Necessary to achieve 2% inflation target sustainably, stably in tandem with wage growth.

Today's decision on yield curve control is not an exit of yield curve control or change in policy.

Appropriate to continue easing policy.

Decision was made today as deteriorating market functions could threaten corporate financing.

Bond market volatility has recently been heightening again, distorting yield curve shapes.

Expects volatility in global financial markets to decrease gradually.

Cannot be optimistic amid uncertainties from Ukraine war, rate hikes in western economies, China’s shift of zero-covid policy.

Economic stimulus effect has been rising despite same nominal rates because inflation brings real rates down.

Unlikely that inflation rises above 2% in FY2023 in whole year as import price inflation falls.

Covid resurgence in China is increasing downside pressure on global economy.

True that pace of recovery of overseas economies is slowing down.

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