Increase in capex to have positive impact on prices – BOJ’s Iwata

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - Bank of Japan (BOJ) Deputy Governor Kikuo Iwata was on the wires last minutes, addressing a meeting with business leaders. Mr. Iwata noted in his speech, noted that the central bank expects 2% price target to be achieved by second half 2016. He also added that the BOJ is prepared to adjust policy if the underlying trend in inflation is seen at risk.

    Key Quotes:

    Effect of China's slowdown appearing in Japan's exports, output

    Positive economic cycle remains intact both for households, companies

    Exports, output to gradually increase as global growth picks up

    Must be mindful that downside risks to Japan exports, output will remain high for time being

    Price trend improving steadily

    Other puzzles include suppressed employment to population ratio

    Expect to see clearer signs of increases in capex, private consumption gradually pushing up prices

    Expect Japan inflation to hit 2 pct around latter half of fiscal 2016

    Biggest risk to Japan's economic outlook, price trend is further slowdown in emerging economies

    Bank of Japan will adjust policy without hesitation if such risks lead to deterioration of underlying trend in inflation
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