BOJ’s Nakaso: Will pursue current monetary easing to meet price stability target

Bank of Japan (BOJ) Deputy Governor Hiroshi Nakaso is on the wires now, via Reuters, speaking at a meeting with business leaders in Hiroshima.

Key Points:

Still long way to go to meet 2% inflation target

Will pursue current monetary easing to meet price stability target

Japan's economy is expanding moderately, supported by overseas economies and increase  in domestic demand

Biggest risk to japan are developments in overseas economies

Recent developments in prices have been weak, but we can expect to see a turnaround

Prices of daily goods likely to rise gradually as consumption increases and yen depreciation pushes up import prices

Output gap expected to widen further in positive territory, lead to higher wages and prices

Inflation expectations expected to rise, expect CPI to increase toward 2 pct

Some firms are cutting back services to avoid passing on rise in labour costs