BoJ's Nakaso: No need to respond via monetary policy if inflation heading toward 2%

FXStreet (Bali) - Hiroshi Nakaso, Deputy Governor, speaking at a meeting with business leaders, notes that Japan's economy has continued a moderate recovery trend, while adding that there is no need to respond via monetary policy if inflation heading toward 2 pct as a trend.

Key headlines

Need to take monetary policy action if oil price falls affect long-term inflation expectations, make it difficult to hit 2 pct inflation

BOJ didn't ease policy in October last year directly in response to oil price falls

Must look at various indicators in gauging price trend

Expect inflation expectations to heighten steadily

Timing of hitting 2 pct inflation may change somewhat depending on oil price moves

Will adjust policy if there is change in price uptrend

BOJ is aiming to achieve price rises accompanied by economic expansion, increases in corporate revenues and wages

Effect of weak yen finally starting to boost export volume