Shirai at a meeting with business leaders
- Expects Japan CPI to approach 2 pct at end of fiscal 2016, then move slightly below 2 pct in fiscal 2017
- Expects Japan CPI to move around 1 pct in fiscal 2016 on average, slightly lower than BOJ's median forecast
- Natural to modify timing for hitting price target in response to changes in external factors
- BOJ must focus on sustainably hitting 2 pct inflation while setting loose timeframe for hitting its price goal
- See risks tilted more toward downside for Japan's economy in fiscal 2017 due to effect of expected sales tax hike
See risks tilted more toward downside on price outlook
If gap between actual inflation and boj's price goal persists, it may make it tougher to heighten inflation expectations
Appropriate to maintain current scale of asset purchases for time being if prices move as I expect
There is room to consider further policy action if price trend weakens sharply, but see chance of this happening as slim for now
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Also ... stay tuned ... she has a press conference to follow at 0600GMT
