Bank of Japan policy board member Goushi Kataoka speaking (at a meeting with business leaders in Okayama).
Kataoka has been a dissenter at BOJ meetings, calling for even more easing efforts to accelerate movement towards the bank's 2% inflation target.
Kataoka says:
- BOJ must ease more to achieve price goal quickly
- BOJ must further promote powerful easing to show strong commitment to hit price goal
- Japan is still quite distant from mulling shift from easy policy
- Premature shift from easy policy could push Japan back into deflation
- Sales tax hike in 2019 may put downward pressure on prices
- Must be vigilant to risk US monetary policy normalisation could weigh on global growth, Japan's economy
- Chance of inflation hitting 2% during fiscal year 2019 is low
- Current policy framework has yet to prompt firms to raise prices, heighten inflation expectations
- Pushing down yields of 10 yrs or longer will boost capex, housing investment and maximise impact of fiscal policy
- Policy coordination between government and BOJ is crucial to heighten inflation expectations
- Persistent deflationary mindset among public is partly behind weak wage, prices
Headlines via Reuters
Lots of blah, blah, blah from Kataoka - but he is sticking to his 'wants more easing' view, which is the gist of all this. I posted on his uber dovish views in the preview hours ago, no surprises in his comments wanting MOAR.
