BOJ’s Funo: Inflation to gradually accelerate toward 2%

By FXStreet Member of the Policy Board at Bank of Japan Yukitoshi Funo, said that inflation is set to gradually accelerate toward BOJ goal of 2%.

Headlines via Reuters

Japan’s economy continues to recover moderately as a trend

Japan’s economy likely to continue expanding moderately

Japan inflation to hover around zero for time being but gradually accelerate toward 2 pct

Improvement in wage growth has been somewhat weak despite record corporate profits, falling jobless rate

Export growth may undershoot forecast given falling growth expectations in emerging markets

Eexpect companies to gradually become more active in investment

Must be mindful of possibility investors’ risk-aversive stance may cool corporate sentiment, capex

Must be mindful of impact falling oil costs could have on inflation expectations of households, companies

Will promote current easy monetary policy stance using 3 dimensions of quantity, quality of asset-buying as well as interest rates

Must achieve price target while maintaining balanced economic growth where price rises are accompanied by wage increases

Various steps to boost Japan’s growth potential important to sustain positive economic cycle
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Source:: FX Street