BOJ will maintain accommodative monetary environment – BOJ’s Ishida

Bank of Japan (BOJ) board member Koji Ishida was on the wires last minutes, warning that global headwinds may pose downside risks to Japan’s financial system, while adding that BOJ is likely to maintain monetary policy.

Key Quotes:

Japan's labour market tightening

Should look at price trend stripping away effect of energy costs

Hard to measure inflation expectations

Shouldn’t worry too much about negative impact of Oil price falls

Expect overseas economic growth to gradually heighten ahead

Expect economy to expand moderately as a trend

Expect capex to continue increasing moderately

Exports may undershoot expectations due to expected slowdown in emerging market growth

Risk of global market turbulence leading to global financial system instability low

Must be mindful of risk that global market turbulence, if persists, may affect household, business sentiment

Chinese authorities likely have sufficient room to deploy fiscal, monetary stimulus steps

BOJ will maintain accommodative monetary environment so corporate profits lead to higher wages, increase in consumption