Bank of Japan Deputy Governor Hiroshi Nakaso. Speaking at a meeting with business leaders in Okinawa.
There will be a news conference later also
- Topping up asset buying remains an option as well as deepening negative rates if BOJ were to ease again
- Japan's economic fundamentals are solid, no need to be excessively pessimistic
- Expect inflation to reach 2 pct around first half of fiscal 2017
- Of 260 trln yen in reserves parked with BOJ, negative rates will be applied to around 10 trln yen
- Effect of QQE with negative rates already appearing with JGB yields falling further
- Don't think retail deposit rates will turn negative in japan, judging from experiences in Europe
- Japan must tackle challenges to raise medium-term growth potential to achieve sustainable economic growth
- Strongly hope govt continues committing to structural reform without loosening the reins
- Monetary policy to overcome deflation, structural reform to raise Japan's growth potential must be pursued in tandem to achieve sustainable growth
- Expect original third arrow of Abenomics to fly higher and faster with BOJ's introduction of QQE with negative rates
Headlines via Reuters
more to come