The BOJ decision earlier:
Kuroda is now holding his press conference:
- Japan's economy is improving
- must be vigilant to financial and currency market moves and their impact on Japan's economy and prices
- Will not hesitate to ease monetary policy even further if needed
- It is important for currencies to move stably, reflecting fundamentals
- JPY weakening has been one-sided
- Rapid yen moves are negative, and undesirable for Japan's economy, making business planning difficult
- Says he has no comment on FX interventions
- Government has taken appropriate steps against excessive FX volatility
- CPI growth is due to the rise in import prices driven by commodity inflation and a weak yen
- It is necessary to achieve the 2% inflation target in tandem with wage growth
- Will strive to achieve stable and sustainable inflation involving wage growth
- Wages are rising gradually, and expected to rise further next year
- Will strive to achieve stable and sustainable inflation involving wage growth
- Expects the Spring wage talks will bring higher wage growth, due to factors including rising price inflation
The BOJ statement made specific mention of wage growth helping to fuel inflation. This is notable change from the Bank of Japan and will be something to watch at future meetings for that 'pivot' from the BOJ that has not come yet.
