Yup, he's still at it, folks
- Wage growth has to be higher than 3% for inflation to materialise
- Will keep emphasising need of wage growth for inflation
- ETF purchases are part of stimulus package
- BOJ's ETF purchases are not greatly affecting stock prices as a whole
- BOJ isn't buying ETFs to manipulate stock prices
- BOJ is buying ETFs as part of a broader monetary policy framework
- BOJ's holdings of ETFs are only 3% of the whole stock market
- BOJ will be considering policy exit around fiscal year 2019
- Chances are high for inflation to hit target around fiscal year 2019 (zzz)
- BOJ will communicate exit with the market when the time comes
- For now, will continue to expand monetary base until inflation stabilises
- Not saying that policy will definitely remain unchanged (zzz)
- BOJ doesn't mean to keep rates unchanged forever
- There could be policy change before 2% price target is achieved
- But BOJ may also keep rates unchanged even if price target is at 2% (ambiguous much?)
Still mainly reiterating the same old, same old. It's like a mega BOJ presser all lumped into one speech really. But yeah, if anything you can take away from this is that, expect the same old BOJ until inflation pressures start to show.
And when the time comes, it's likely they won't hold the market's hand as much as the Fed has done in guiding the market through the taper tantrum and rate hikes.
But yeah, the final two comments on this post basically sums up the whole of Kuroda's speech today: all over the place.