Bank of Japan Governor Ueda says inflation is dropping back at a rapid pace
- the recent recession in Japan follows previous strong quarters
- Japan's economy will continue recovering gradually
- Japan firms' capex plan is strong, which likely to be implemented eventually
- Japan's economy not yet in situation where sustained achievement of 2% inflation can be foreseen
- In judging whether sustained achievement of 2% inflation target can be foreseen, this year's annual wage negotiation outcome is key
- Compared with when we announced our january report, labor unions have demanded wage growth higher than last year, big firms seem keen to hike wages
- Want to look at collective outcome of wage talks, as well as hearings we conduct on firms
