You have to wonder if the Bank of Japan begins to tilt more hawkishly once again in light of the yen declines.
- It's still taking time for us to get to 2% in a sustainable manner
- If you have inflation expectations anchored around zero, it's hard to change them
- We can't telegraph all our future movements ex ante
- The problem is that if you proceed very gradually and create expectations that rates are going to stay at low levels for a very long time, this could lead to huge build up of speculative positions
