From the BOJ's Shirai:
- No change to my view BOJ must hit 2% inflation target at earliest date possible but must be mindful of how rising prices could hurt households
- Some households are enjoying benefits of rising wages and spending, monetary policy must support such positive momentum
- Must consider 2-year timeframe with some flexibility
- BOJ isn't having any problem buying assets under QQE
- Unclear at what pace inflation expectations will heighten ahead
- Prices and wages won't necessarily rise at same time
- Inflation expectations in Japan are flat at the moment
Flexibility on the 2-year timeframe means they don't have to do more QE right away to get there.
Here are the highlights from his full speech earlier.
USD/JPY is up 18 pips off the lows at 122.44. It's mostly due to a broader USD recovery.
