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!