BOJ monetary policy board member
- inappropriate to recklessly seek to hit price target with additional easing
- monetary policy can support structural changes in Japan's economy
- important to hit price target by patiently maintaining current monetary easing with eye on overseas developments, demerits of easing on banking system
More:
- must closely watch how big an impact China's stimulus plan has on economy, when the effects will appear
- impact of monetary policy on inflation is becoming more complex as improvements in productivity weigh on price growth
- improvements in productivity not necessarily bad thing for economy so shouldn't ease further simply in response to weak price growth
- very important to watch out for side effect of prolonged easing as financial institutions' profits fall, lead to deterioration in financial intermediation
- Japan financial institutions' capital-to-asset ratio levels meet threshold but are declining as a trend
- BOJ must scrutinise effect, demerits of easing including risk of its policy accumulating financial imbalances
- overseas economies showing signs of slowdown but likely to sustain moderate growth
- Japan's economy continues to expand moderately as a trend but outlook highly uncertain
- big factors affecting Japan's economic outlook are overseas developments, notably china, and impact of scheduled domestic sales tax hike
- October sales tax hike may weigh on Japan's economy if overseas economic slowdown continues around that period
