BoJ’s Kuroda: Additional headlines hitting the wires

By FXStreet FXStreet (Bali) – Additional headlines from BoJ’s Kuroda are hitting the wires, via Reuters. Governor Kuroda is speaking at a meeting held by the Naigai Josei Chosa Kai (Research Institute of Japan) in Tokyo.

Key Quotes

Strong domestic demand is one reason corporate profits are high

Rises in capex, wages somewhat slow despite companies’ record profits, which shows deflationary mindset not completely dispelled

Japan has become more resilient to slowing exports and overseas economies
Low oil prices causing terms of trade to improve, which is pushing up corporate profits

By maintaining boj’s current stimulus programme, japan can achieve 2 pct inflation but must carefully watch risks such as slowdown in emerging economies

BOJ won’t hesitate to adjust policy if needed to achieve 2 pct inflation at earliest date possible

Weak yen is helping to increase dividends and profits repatriated from overseas

Slowdown in emerging economies, including china, is most important risk to japan’s economic outlook

China’s economic growth likely to heighten from year-end through next year
Important to note that slowing exports and output are not causing labour demand to fall

There is uncertainty on how much fiscal stimulus can lift china’s economic growth given structural problems such as excess capacity

You can say that japan is at full employment

Tight labour market …read more

Source:: FX Street