Further comments by BOJ deputy governor nominee Wakatabe
- The effects of the lost decades is very deep
- Deflationary mindset is still entrenched among public
- BOJ owns about 40% of JGBs
- 2014 sales tax hike may have hampered BOJ target
- Prices and wages relationship is very important
- BOJ should create conditions for companies to raise pay
- Declines to say whether or not there should be a time frame for 2% inflation target to be hit
- BOJ can learn from BOE, ECB, and Fed on exiting easing policy
- Says that fiscal policy is the preserve of the government
- Refuses to comment on 2019 sales tax hike
- JGB purchases is to hit inflation target
- Currently not at jobless rate that will speed up inflation
Nothing too notable from Wakatabe, though his comments on the sales tax hike certainly will raise some questions when the issue comes about next year.
The Japanese government is planning a sales tax hike next year, which in effect may pin down price pressures even further. And that may mess with Kuroda's planned timeline on reaching the 2% inflation target by fiscal year 2019.
His earlier comments can be found here.
