BOJ’s Iwata cites global weakness for why BOJ eased further

Bank of Japan (BOJ) Deputy Governor Iwata is now on wires via Reuters, justifying the reason behind BOJ’s latest easing move.

Key Quotes:

• BOJ decided to strengthen its monetary easing to prevent risks posed by overseas economies from hurting sentiment
• G7 countries showed resolve to ensure ample dollar funding after Britain voted to leave EU
• Need to carefully monitor impact Brexit will have on global economy
• Expect Japanese economy to remain on gradual recovery path
• Expect consumer spending to recover due to tight labour market
• Expect government stimulus to contribute a lot to growth this and next fiscal year
• Yen gains, lack of improvement in inflation expectations behind slowdown in consumer prices
• Expect consumer prices to start rising again due to strong labour market, low unemployment
• Govt stimulus will help push up wages and increase employment
• Expect consumer prices to reach 2 pct price target in fiscal 2017 but there is a lot of uncertainty about this view
• Slowing consumer prices are preventing gains in inflation expectations
• Uncertainty about overseas economies could curb wage gains
• BOJ increased ETF purchases to prevent worsening of corporate and household sentiment