9/24/2019, 8:03 AM (Source: TeleTrader)
more TeleTrader news

Kuroda points to risks for inflation momentum

External headwinds are increasing and if they are materialized through prolonged weakness in exports, Japan's economic growth "will decelerate substantially," Bank of Japan Governor Haruhiko Kuroda said on Tuesday. Speaking in Osaka, he stressed the possibility for the inflation's path to shift away from the direction toward the 2% target, especially in the case of a further drop in oil prices.

The top rate-setter still repeated expectations of a gradual return to stability but remained determined to move "without hesitation" upon a rise in downside risks. Even though the BoJ has expressed willingness to add stimulus next month, Kuroda said it "does not have any preconception."

The governor underscored a further slowdown in global growth could weigh on capital spending. The output gap and long-term inflation expectations must be closely tracked, he said and acknowledged the need to make policy more sustainable.

Breaking the News / IT