Reuters is out with the latest comments by the Bank of Japan (BoJ) Deputy Governor Wakatabe, with the key headlines found below.
BoJ will maintain massive stimulus to nudge up prices to 2pct target.
BoJ must scrutinize the impact of policy on markets financial system.
Various external risks exist for Japan’s economy, notably fate of Sino-US trade friction.
Expects inflation to gradually accelerate as the economy continues the expansionary trend.
There is a risk wage, prices may not rise much.
Next year’s scheduled sales tax hike is also a risk factor for Japan’s economy, prices.
Price falls undesirable as they would leave central banks with little room to deploy conventional monetary policy tools.
Japan may revert to deflation if its economy comes under downward pressure again.
BoJ’s monetary policy does not directly target fx but setting 2pct inflation target helps stabilise fx market.
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