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BoJ's Kuroda: Additional headlines hitting the wires

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Bali) - Additional headlines from BoJ's Kuroda are hitting the wires, via Reuters. Governor Kuroda is speaking at a meeting held by the Naigai Josei Chosa Kai (Research Institute of Japan) in Tokyo.

    Key Quotes

    Strong domestic demand is one reason corporate profits are high

    Rises in capex, wages somewhat slow despite companies' record profits, which shows deflationary mindset not completely dispelled

    Japan has become more resilient to slowing exports and overseas economies
    Low oil prices causing terms of trade to improve, which is pushing up corporate profits

    By maintaining boj's current stimulus programme, japan can achieve 2 pct inflation but must carefully watch risks such as slowdown in emerging economies

    BOJ won't hesitate to adjust policy if needed to achieve 2 pct inflation at earliest date possible

    Weak yen is helping to increase dividends and profits repatriated from overseas

    Slowdown in emerging economies, including china, is most important risk to japan's economic outlook

    China's economic growth likely to heighten from year-end through next year
    Important to note that slowing exports and output are not causing labour demand to fall

    There is uncertainty on how much fiscal stimulus can lift china's economic growth given structural problems such as excess capacity

    You can say that japan is at full employment

    Tight labour market is putting upward pressure on wages

    Its unclear how much an expected china recovery will boost growth in other Asian economies given structural changes in china's economy

    Japan may temporarily fall below potential growth rate after 2017 sales tax hike

    Daily and weekly measures of prices for food and other goods are clearly rising

    CPI basket shows price gains are spreading in a sustainable manner

    Output gap expected to improve further due to improving labour market

    Utilisiation of capital and labour will continue to improve and place upward pressure on prices

    Inflation expectations rising over long term
    For more information, read our latest forex news.
     

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