BoJ Deputy Governor Masazumi Wakatabe said today that the first characteristic of the current economy is it’s being “widespread”. And it’s “bring about benefits to a wide range of economic entities.” And, the second characteristic is that “inflation rate turning positive”, “which is different from the case in the mid-2000s”.
On outlook, he reiterated the bank’s rhetorics that the economy is expected to continue on an “expanding trend”. But he also noted various risks including US-China trade friction. On prices, he said CPI is likely to “increase gradually” as the economic expansion continues.
Though, Wakatabe also warned that for now, inflation remained at around 1%, “only halfway” to 2% target. And, “in a case where downward pressure is exerted on the economy again, it may revert to deflation. Thus, it’s appropriate to continue with the “large-scale monetary easing”.
