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
-
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.