Bank of Japan Governor Kuroda speaking at a meeting of Councillors of Nippon Keidanren (Japan Business Federation)

Headlines via Reuters :

  • Fine-tuning of QQE announced Friday will allow BOJ to sustain QQE, adjust policy if needed
  • Would like to reiterate BOJ's unwavering determination to do whatever it takes to overcome deflation, achieve 2 pct price target
  • Labour market is near full employment
  • Companies maintaining positive stance toward capital expenditure
  • Will solicit opinions from experts, market participants in deciding eligibility criteria for new ETF purchases
  • BOJ intends to make a wide variety of firms eligible for new ETF-buying programme
  • Japan's price trend is intact, recent slowdown in CPI due to energy prices
  • BOJ's new ETF-buying programme would target not only firms actually increasing capex, wages but also those raising productivity, efficiency
  • Japan is firmly on path to achieving 2 pct inflation target
  • Cannot achieve price target in stable manner without wage gains
  • Japan's labour force contraction must be urgently addressed, such as timely labour market reforms
  • Consumer prices and wages have clearly risen since start of QQE
  • Current conditions both at home and abroad are very likely to reward Japanese firms that act decisively
  • QQE has clearly led japan businesses, households away from deflationary mindset
  • Japan has already started to see pro-active investment by some firms
  • When Japan is at a critical juncture like now, such decisive corporate activities should be taken more broadly
  • Corporate, household sectors have changed stance and expect prices to rise
  • Price rises are broadening beyond items that are affected by FX moves
  • Moderate rises in Japan prices aren't temporary but rather a change in trend

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Also, comments a little while ago from Japan PM Abe:

  • Japan a step away from ending deflation
  • Would like companies to increase wages next year more than this year
  • Key to sustaining a positive economic cycle lies in whether companies boost wages, capex

Abe was also speaking at the Keidanren annual meeting. its not surprising he was appealing for wage increases.