Kuroda says BOJ will maintain easing, watch impact of global tightening

Might be all academic soon anyhow. Looks like the Feds 'might' be receptive to seeing evidence and not be so hawkish, which would ease pressure on other countries.

https://youtu.be/Hs3-r9xD_-U

Raising interest rates, however would be rather fatal for Japan, and it would suddenly head towards the situation the UK is in, and that, would certainly, not go down well with the populace here.

So high inflation is more acceptable, but higher long term interest rates would not be?

Seems a dubious statement to me.

The supply chain for construction materials and prices for them remain unaffected, so they're going to keep doing what they're doing. We're just expected to suck up all the higher prices so they can keep their money scam going.

My dollar example was for illustrative purpose. So, ok, coffee in a cafe used to be 800 yen. Now around 300 yen. Cost of living in Japan is considerably lower pre and post bubble.

Once again, you are living on fantasy island if you think this is even 1% true for the average Japanese person or family. And no, please dont share whatever you are smoking, dont want to catch whatever made you think this way.

This guy has no idea of running the economy anymore, and it's disgusting that we have LDP trolls defending him. I read Yahoo Japan to see nothing but disgust from Japanese citizens against BoJ and Kuroda.

indigo:

2 percent inflation target, WTF!! we are already at +15%!!

Kuroda is talking about demand-pull inflation, that is still below 2%.

Inflation you are talking about is cost-push inflation.

Demand-pull inflation requires stable wage growth, which in turn, requires a long term economic growth.

Cost-push inflation is caused by external events (pandemic, supply chain disruption, war, US moneytary policy, etc). Such inflation is temporary problems and can be dealt with temporary solutions such as government handouts (energy price reduction etc) and currency intervention.

indigo:

2 percent inflation target, WTF!! we are already at +15%!!

Kuroda is talking about demand-pull inflation, that is still below 2%.

Inflation you are talking about is cost-push inflation.

Demand-pull inflation requires stable wage growth, which in turn, requires a long term economic growth.

Cost-push inflation is caused by external events (pandemic, supply chain disruption, war, US moneytary policy, etc). Such inflation is temporary problems and can be dealt with temporary solutions such as government handouts (energy price reduction etc) and currency intervention.

Today, Milk has risen by 14% in my local Supermarket.

All the products made from Milk will clearly rise in step with this, so I am not surprised at @indigo's 15% claim, it's definitely in the right ballpark.

Raising interest rates, however would be rather fatal for Japan, and it would suddenly head towards the situation the UK is in, and that, would certainly, not go down well with the populace here.

The central bank has said its 2 percent inflation target should be attained in a stable and sustainable fashion supported by robust wage growth. Despite the headline inflation figure in Japan topping that threshold in recent months, Kuroda has ruled out the possibility of a near-term interest rate hike because inflationary pressure is expected to ease.

Good. Hope he accepts the governor job for the next term.

All this guy needs to do to prevent the yen depreciating is keep his mouth shut. Is there something wrong with him?

Is there any other central bank in the world that claims it is buying up huge amounts of public debt and other assets because they believe it will produce a sustainable increase in prices and wages?

This while article is full of nonsense that makes no sense.

It’s typical Japanese central planner babble - it sounds sweet and nice but it is completely wishful thinking and you know it is not going to work, just as it hasn’t worked so far for years and years.

The truth is that the BOJ needs to keep buying public debt because otherwise the politicians would have to decide what spending to slash. That’s it.

@JeffLee

No you are mistaken the government could introduce a mandatory new basic hourly wage rate ...It could be enforceable by law.

Also allow companies to increase workers salaries they could reduce the ridiculously high 40 % corporation tax on small to medium sized companies !

There are many things that the old timers in the J gov could be doing but because they are in the pockets of some very powerful industrialists..they refuse to do!

2 percent inflation target, WTF!! we are already at +15%!!

well done sir, people and businesses in the so called Advanced economies are goin out of business and filing for bankruptcies due to rising interest rates, losing your home or closing your business is the ultimate kick in the teeth when you can't make the mortgage payment due to rising rates.

Well done Japan, and congratulations .

@Yubaru

Because government policies have made it impossible...

Um, nope. Japanese corporate profits hit a record high during Abenomics, and remain near that all time high now, helped by the govt's decision to cut the corporate tax rate. Corporates' cash reserves have also never been higher. They can pay higher wages. They just don't want to.

Why are people in Japan so reluctant to criticize Japanese corporations?

normal folks here dont use dollars, 

My dollar example was for illustrative purpose. So, ok, coffee in a cafe used to be 800 yen. Now around 300 yen. Cost of living in Japan is considerably lower pre and post bubble.

Rates will stay low cos tech outbids all wage increases.

Look to Powell and others to follow Kuroda.

Lunatic policy continues. All these developed economy central bankers are following this mantra - lost decade becomes lost 2 decades and now almost 3. Even with some of the others ẗightening, monetary policy is still far too loose. and likely to get looser as recession bites again.

Why? Prices steadily declined for around 25 years following the burst of the bubble. A coffee in a coffee shop used to cost $10 in the 1980s. Now it costs around $3. Japan is a lot more affordable than it used to be.

Guess what, normal folks here dont use dollars, and that $10.00 cant be found in coffee shops any more, as the overwhelming majority of them have gone out of business.

Not to mention that real wages have been not just stagnant, but gone down in actual buying power, because of increases in taxes and basic cost of living expenses. Gasoline used to be under 100 per liter, now 160 or higher, electricity costs more, water, food, everything. People used to buy land at 100 tsubo per lot and build a house, now one would be lucky to afford 1/3 that, if they can get it.

Why blame the govt when wages are decided by private sector employers? The govt has long been calling for wage hikes but the employers refuse. Blame them.

Because government policies have made it impossible, that's why. Small to mid-sized businesses, to survive, have to cut their profit margins to the bone, as those increases in taxes and operating costs burn them too.

Major corporations may be making money, but they have cut their overhead as well, by hiring fewer and fewer fulltime employees and contracting them out.

supported by robust wage growth.

Dream on! Supported by more tax money and debt, that will just make things worse!

Wages stagnant......J government - useless as usual.

Why blame the govt when wages are decided by private sector employers? The govt has long been calling for wage hikes but the employers refuse. Blame them.

will prices go down? I very much doubt that this will happen.

Why? Prices steadily declined for around 25 years following the burst of the bubble. A coffee in a coffee shop used to cost $10 in the 1980s. Now it costs around $3. Japan is a lot more affordable than it used to be.

"At present, the Bank of Japan deems that it should continue with monetary easing and thereby firmly support economic activity," Kuroda said in his speech.

Late Stage Capitalist rentiers in Japan and in the West have become enamored with this socialist largesse fro the rich and are not going to give it up anytime soon.

Kuroda is a bagman for Japan Inc.

https://www.cnbc.com/2013/12/18/qe-the-greatest-subsidy-to-the-rich-ever.html

Seeing steep price rises for food in the supermarkets and restaurants/ cafes etc.

Cutting back on non essentials.

Wages stagnant...imported food costs are hurting people...J government - useless as usual.

Most of the recent rise in consumer price inflation came as companies passed on rising import costs, inflated by the weaker yen

And he does nothing, not a thing to help. No he made a decision and the LDP have told me what to do so population suffeeeeeeeer.