BOJ’s Kuroda presser deets

Who wants to guess the next 10 lines of repeated mantra ?! lol

  • pullback in demand after sales tax hike has been within expectation
  • virtuous cycle of economic activity continues to operate steadily
  • BOJ branch managers see that signs of pullback from sales tax hike is receding
  • CPI expected to move broadly in line with April forecasts
  • CPI likely to hit 2% target around middle of forecast period between fiscal 2014-15

Yep, USDJPY still 101.57

  • Tankan shows that corp sentiment is buoyant despite sales tax hike
  • BOJ sees no need to change price forecast from before
  • doesn’t expect inflation to slow below 1%
  • BOJ’s need to take measures to increase production capacity in Japanese economy
  • QQE has been having intended effect
  • some BOJ board members are more cautious on CPI outlook
  • will continue with QQE as long as necessary to achieve 2% price target in a stable manner
  • will make policy adjustments as necessary
  • even if economy contracts in April-June expect a rebound in July-Sept

Right that’s enough. Time to move on. USDJPY 101.58