BoJ’s Funo: Downside risk to medium to long-term inflation expectations large

The Bank of Japan (BoJ) board member Funo is out on the wires now, via Livesquawk, commenting on the Japanese economy and monetary policy programme.

Key Headlines:

Need to patiently promote strong monetary easing under the current framework.

Momentum towards 2 percent price target in place, still distance to price target.

Risk of instability in the financial system is not large.

Prices remain weak, downside risk to medium to long-term inflation expectations large.

Expects the pace of economic growth to slow in fiscal years 2019 and 2020.