- Haruhiko Kuroda, BoJ Governor
Bank of Japan Governor Haruhiko Kuroda said that consumer prices excluding fresh food and energy are climbing more than 1%, indicating the overall inflation trend is steadily improving. Moreover, Kuroda added that consumer spending, which accounts for 60% of Japan's economy, started to recover, hitting a more optimistic note on the overall economy despite growing expectations for extra stimulus. Household spending increased 2.9% from a year earlier in August, after falling for two consecutive months. Nevertheless, Kuroda acknowledged that exports and factory output weakened due to a slowdown in emerging markets.
Kuroda's optimism about the economy suggests he does not see the need to ease monetary policy, though many economists expect the BoJ will ease its policy further at a planned October 30 policy meeting. The central bank will mostly likely expand its 80-trillion-yen-a-year asset purchase programme as poor results of other indicators, including industrial output, machinery orders and inflation expectations, reinforced such speculation. Economists are generally less optimistic than Kuroda about consumption, as consumer confidence weakened in September.
© Dukascopy Bank SA