Bank of Japan Deputy Governor Kikuo Iwata, speaking at a meeting with business leaders in Sapporo

  • Sees economy is on gradual recovery path
  • Says no need to change BOJ's commitment to hit inflation target at earliest date possible with timeframe of around 2 years
  • Exports are recovering, benefiting from a recovery in overseas economies and the weak yen
  • Underlying trend in inflation improving steadily due to effects of BOJ policy
  • Capital expenditure is showing clear signs of increasing
  • Sales tax hit on demand slowed inflation with effect having lasted longer than expected
  • Says pressure from sales tax hike on demand diminishing
  • Industrial production recovering due to firm consumer spending and exports

  • Inflation to accelerate gradually accompanied by wage rises

  • There are stronger signs that companies cannot hire enough workers

  • Growth could slow below potential in fy 2017 due to next sales tax hike

Headlines via Reuters