- Because we are foreseeing convergence to 2% of underlying component, we've been adjusting the degree of easing slowly
- As Japanese automakers have chosen to lower export prices without passing them to US consumers, that has stabilised the volume of auto exports, not creating large negative effects on employment and production here
- There's strong enough momentum in domestic price and wage dynamics to prevent negative shocks from having a large impact on inflation
- At the moment, not seeing very high risk of inflation, especially underlying inflation accelerating in wake of fiscal stimulus
- Watching the possibility of food inflation and yen weakness altering inflation expectations carefully
- It's government job to deliver on medium to long-term fiscal sustainability
- We do keep an eye on exposure that banks have on non-bank financial institutions outside Japan
- Exchange rates should follow fundamentals
- How exchange rate changes will affect our inflation outlook is a very important question for us
The bolded comments are the most important ones, in my opinion. I recall the BoJ hiking rates just because of yen depreciation last year, and I think that's what prompted them to anticipate the rate hike this time as well. Still, it doesn't feel enough for the market.
