“The Japanese economy is picking up as a trend“, said the governor of the Bank of Japan (BoJ), Haruhiko Kuroda, during the press conference after the announcement of the monetary policy decision on Friday.
Additional comments
Monetary policy will be further eased without hesitation as necessary.
CPI expected to rise sharply in Japan .
The situation in Ukraine could affect the world economy on several fronts.
The situation in Ukraine could boost inflation globally.
The situation in Ukraine could indirectly affect the Japanese economy through supply chain disruptions at its companies.
Cost-raising inflation will push Japan’s economy down in the long run by reducing corporate profits and real household income.
The CPI will clearly increase as mobile phone service rates are reduced.
It is desirable that the currencies move permanently reflecting the fundamentals.
It is appropriate to continue the current easing.
There is no change in the basic structure that the weak yen is positive for the Japanese economy.
Japan core CPI may rise around 2% largely due to the rise in petroleum products for some time after April.
They’re closely watching the effects of rising import costs in the Japanese economy.
The recent increase in import costs due to increases in world commodity prices instead of weak yen.
The recent rise in prices is cost-push inflation and is not positive for the Japanese economy.
Foreign exchange leads not only to higher import prices, but also to higher export prices.
No need to worry about stagflation in Japan, the United States, and Europe.
There is not much correlation between interest rate differentials and currencies.
There is no need for Japan to raise rates at all.
Source: Fx Street
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