- Haruhiko Kuroda, BoJ Governor
Haruhiko Kuroda affirmed his upbeat view on the world's third largest economy this week, even despite a recent appreciation in the Yen and a slump in Japanese stocks, stressing that growth will pick up around mid-year as the string of the latest tax hike will begin to fade. Kuroda added that price rises will broaden amid the ongoing economic recovery, reiterating his view the economy will reach the 2% inflation in about a year's time.
Other central bank's members, however, are less confident about future prospects. Moreover, the Nikkei newspaper reported that the government will cut its economic growth outlook for the first time in more than a year this week amid concerns about the blow to consumption caused by the tax increase. The Cabinet Office will stick to the phrase "economy is recovering at a moderate pace", however, they will warn about the weakness in consumer sentiment and slower spending, following a 3% jump in the levy.
A first downgrade in the assessment since November 2012 can be interpreted as a first step on the road toward further easing. All crosses with the Japanese Yen are projected to move higher on the report, as any cautiousness in the assessment or dovish comments will provoke a massive sell-off of the Japanese currency.
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