Bank of Japan deputy governor Iwata:
- BOJ decided to strengthen its monetary easing to prevent risks posed by overseas economies from hurting sentiment
- G7 countries showed resolve to ensure ample dollar funding after Britain voted to leave EU
- Need to carefully monitor impact Brexit will have on global economy
- Expect Japanese economy to remain on gradual recovery path
- Expect consumer spending to recover due to tight labour market
- Expect government stimulus to contribute a lot to growth this and next fiscal year
- Yen gains, lack of improvement in inflation expectations behind slowdown in consumer prices
- Expect consumer prices to start rising again due to strong labour market, low unemployment
- Govt stimulus will help push up wages and increase employment
- Expect consumer prices to reach 2 pct price target in fiscal 2017 but there is a lot of uncertainty about this view
- Slowing consumer prices are preventing gains in inflation expectations
- Uncertainty about overseas economies could curb wage gains
- BOJ increased ETF purchases to prevent worsening of corporate and household sentiment
Headlines via Reuters
Please join Iwata in the bar after his speech - free Kool Aid for all!