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9 Feb 2015
Japan not sliding back into deflation – BOJ Morimoto
FXStreet (Mumbai) - Bank of Japan (BOJ) board member Yoshihisa Morimoto, in a meeting with business leaders today said that Japan will not slide back into deflation as improvements in the economy are able to neutralize the temporary pressure on prices from plummeting oil prices, signalling that no immediate stimulus extension was necessary.
Morimoto was one of the four dissenters to last October's BoJ decision to expand its stimulus program, so called quantitative and qualitative easing (QQE), but dropped his opposition at the next meeting.
Key Quotes:
"Crude oil prices have fallen further, but when you look at other factors, the broad trend hasn't changed,"
"The BoJ should make utmost efforts to pre-empt or minimize the risks in conducting monetary policy,"
"For the BoJ to have a smooth exit from its easing measures, it's important for there to be trust in fiscal reforms,"
"What's important is to achieve a cycle under which prices rise gradually accompanied by improvements in the economy."
Morimoto was one of the four dissenters to last October's BoJ decision to expand its stimulus program, so called quantitative and qualitative easing (QQE), but dropped his opposition at the next meeting.
Key Quotes:
"Crude oil prices have fallen further, but when you look at other factors, the broad trend hasn't changed,"
"The BoJ should make utmost efforts to pre-empt or minimize the risks in conducting monetary policy,"
"For the BoJ to have a smooth exit from its easing measures, it's important for there to be trust in fiscal reforms,"
"What's important is to achieve a cycle under which prices rise gradually accompanied by improvements in the economy."