Comments by BOJ deputy governor Amamiya
- High possibility of strong global growth to continue
- Sees improvement in household spending
- Sees gradual growth in wages
- Fiscal year 2020 growth may slow due to slowdown in capex
- May also slow due to sales tax effect
- Expects inflation to keep rising
- BOJ is to continue easing monetary policy
- Despite tight labour market, prices are lagging
Nothing new so far to come from Amamiya with regards to policy. The Japanese government is set to introduce a sales tax hike in fiscal year 2019 so that will cause a bit of a ruckus in the Japanese economy.
The last sales tax hike in 2014 prompted a technical recession in the quarters to come, so that will be something the BOJ and the government wants to avoid when the time comes again.
