Bank of Japan Governor Haruhiko Kuroda said on Wednesday that Japan's economy has improved after BOJ began QQE easing, low bond yields reflect impact of BOJ easing. Kuroda said that Japan continued to recover moderately. At the same time he acknowledged that private consumption was disappointingly weak and consumer spending isn't strong enough.
He noted that wage rises, increase in household income are critical for consumption to rise so BoJ will be watching developments carefully. Kuroda said that weaker yen brought cost-push effects on CPI. He hinted toward need for additional stimulus, if required, to curtail further Yen appreciation and attain its 2% CPI goal.
Kuroda said Japan hasn't ended deflation completely, but Japan's economy is no longer in a deflationary mode. He said move on various factors and it was desirable for foxex to move in stable manner and to reflect fundamentals. Kuroda declined to comment on sales tax.
