BOJ’s Sato-2% price outlook unlikely

7 December 2015, 02:56
sathish kumar
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Bank of Japan (BOJ) board member Mr. Takehiro Sato is now crossing the wires; casting doubts over the central bank’s 2% price target expected to be achieved by second half 2016.

Following are the headlines hitting the wires as he speaks,

2% inflation target is flexible concept

Recent decline in commodities is due partly to demand-side factors

Difficult to expect energy price recovery in short term

There are signs of deflationary pressure from asset prices in China

Europe' debt problem could come in focus again due to lack of plans to reduce sovereign debt

CPI won't jump to 2% as 2% price outlook unlikely

Need to monitor risks of financial market instability during times of low liquidity

Trend CPI affected by wage talks, growth outlook

Impact of JGB buys on nominal rates might have fallen

Need to monitor rising costs of Dollar funding for Japanese banks

Japan's virtuous cycle from income to spending continues to work

Japanese companies do not think recent profit improvement will continue

Mid- to long-term inflation expectations rising on the whole

Gains in services prices key to maintaining core CPI around 1 pct
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