Japan's Economy Minister Kiuchi says the government has consistently communicated its stance of taking policy that heeds to fiscal sustainability
- The effect of the weak yen on local inflation is delayed and not necessarily significant.
- Wholesale prices are climbing due to recent oil increases, and that consumer inflation rise remains moderate.
- There is no change to government's stance on monetary policy.
- Policy tool remains the BoJ's decision.
- Government will not convey to the BoJ its preference on timing, pace and direction of policy changes.
- Important for the government and the BoJ to communicate closely and share views on economy, policy and financial developments.
- FX rates are determined by various factors, which include interest rate differentials, the gap in inflation rate between Japan and other countries, and current account developments.
- Long-term interest rates are determined by various factors as well, such as inflation, growth expectations and risk premia.
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