BoJ Governor Haruhiko Kuroda warned that risks to economic outlook are “skewed to the downside, mainly from overseas economies.” He cited US-China trade war, China’s stimulus measures, Brexit, geopolitical risks and emerging markets are major uncertainties. He added that “global economy is slowing down and it shows no clear sign of turning for the better. Downside risks from overseas economies are heightening. US-China trade friction appears to be prolonged.”
Thus, “we are facing a situation where we need to pay more attention to the risk of the momentum toward 2% price target being undermined”. And, “with such situation in mind, we will re-examine economic and price developments at the next policy-setting meeting.” Though for now, “a moderate uptrend in wages and prices remain intact,” he said. “Prices are expected to accelerate gradually toward 2%.”
