Bank of Japan summary, Headlines via Reuters:
- weak yen is positive for economy when output gap is still big, trend inflation is very low
- must be vigilant to chance of unexpected tail risk triggered by Ukraine crisis
- Japan’s inflation excluding energy remains very low, situation different from US, Europe
- Japan’s consumer inflation likely to move around 2% for time being from April, but price rise exceeding 2% won’t be sustainable
- hard to achieve the BOJ 2% inflation target as the expected rise in inflation is driven by temporary factors
- its crucial that wage hikes, being seen at present by big firms, to spread to small firms in order for broader wages & inflation to rise sustainably
- this is a risk prices may come under downward pressure if medium & long term inflation expectations do not rise sufficiently
- the Bank of Japan much continue to support the economy with its current powerful monetary easing