BOJ: no risks for a 2% price target
As it was widely expected, the Bank of Japan maintained monetary policy unchanged in January. On a press-conference that followed the meeting the BOJ chief Haruhiko Kuroda did his best to calm all the market worries.
- The prices remain on track to meet the 2% inflation target;
- Japan can reach the 2% price target in late 2014 or 2015 financial year;
- BOJ will continue the current monetary policy if the risks for the price target don’t materialize;
- BOJ policy is targeting not a strong or weak yen, but a 2% inflation
- Downside risks to Japan economy are receding;
- Low inflation in Europe shouldn't weigh on price growth in Japan;
- Sales tax hike will not hurt positive cycle building up in Japan economy;
- BOJ is always closely monitoring markets but see nothing to be worried about now;
- A few BOJ board members hold more cautious view on prices.