Takahide Kiuchi is a member of the Bank of Japan monetary policy Board
He has been a serial dissenter - doesn't like the expanded QQE program, doesn't like negative rates.
He is speaking today to a meeting with business leaders in Ishikawa:
- Additional effects of monetary easing are diminishing
- Demerits of QQE steadily increasing
- Achieving 2% inflation takes time, need structural changes in the economy with efforts from government and private sector
- Bank of Japan should position its price target as a medium-, long-term goal and conduct policy flexibly
- Negative rate policy having bad effect on financial market stability
- Japan's output gap likely to remain more or less at neutral level, making it hard to expect marked rise in underlying trend inflation
- No notable improvements have been observed in past several years to Japan's potential growth rate, which is still at range of zero-0.5%
- Japan firms may not change significantly their cautious stance on capex
- private consumption lacking momentum partly due to disappointingly slow wage growth
- Overseas economic developments, global financial market moves are most serious downside risks to Japan's economy
- Year-on-year rates of change in Japan's price indicators likely to decelerate somewhat over the next several months
- Don't expect Japan's core CPI to hit 2% by fiscal 2018
- Important to consider ways to enhance liquidity provision facilities to maintain smooth functioning of markets
- BOJ must switch its focus of policy from price stability to financial system stability
Headlines via Reuters
full text is here: Recent Developments in Economic Activity, Prices, and Monetary Policy
