BOJ’s Kuroda: Inappropriate to tighten policy even if energy, commodity costs push up inflation

Bank of Japan (BOJ) Governor Haruhiko Kuroda is on the wires now, via Reuters, making some comments on the impact of inflation on the economy and the central bank’s monetary policy stance.  

Key quotes

Cost-push inflation not accompanied by rising wages won't lead to sustainable achievement of 2% inflation.

BOJ seeks to achieve situation where inflation rises moderately in tandem with increase in corporate profits, wages.

Cost-push inflation lacking wage growth will hurt households' real income, corporate profits, and have negative impact on Japan’s economy.

Inappropriate to tighten policy, withdraw stimulus even if energy, commodity costs push up inflation.

Japan's inflation expectations, wage growth remain subdued, which means cost-push inflation will have negative impact on economy.