BOJ’s Ishida:

  • Japan’s economy continues to recover moderately
  • Exports continue to move sideways, lacking momentum
  • Structural factors, such as shift of Japan firms’ production overseas, may be partly behind soft exports
  • Capex expected to increase moderately as a trend
  • Next month’s Q2 GDP data likely to show negative growth but economy’s positive momentum seen intact
  • Effect of April sales tax hike likely to subside gradually
  • Labour market conditions likely hold key to whether household spending will remain firm
  • Want to scrutinise whether companies increasingly translate costs to consumers through higher prices
  • Environment surrounding exports to gradually improve as global growth picks up, though uncertainty remains
  • QQE exerting intended effects on markets, Japan’s 10-year JGB yield remains at very low levels
  • Inappropriate to judge if BOJ’s price target met by looking at core CPI alone, must take into account other data too to gauge overall price trend

Headlines via Reuters

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Bank of Japan Board Member Koji Ishida speaking to business leaders in Yamaguchi.

At 0500GMT, Ishida will hold a press conference to follow up.