BOJ’s Kuroda: Economy, prices in line with April forecasts

Friday, 12 July 2013 04:06 - - {{hitsCtrl.values.hits}}

TOKYO (Reuters): Bank of Japan Governor Haruhiko Kuroda said on Thursday the country’s economy and prices were moving roughly in line with central bank projections made in April. Speaking after a monthly policy review, Kuroda also said Japan’s long-term interest rates were very stable, with the country’s bond market volatility reduced, despite rises in US and European yields. While keeping monetary policy steady, the BOJ offered its most optimistic view of the economy in 2-1/2 years, saying a recovery had started as a weak yen and massive monetary stimulus spark activity and lift confidence.

Here are highlights of Kuroda’s comments at a news conference after policy decisions were announced: “Overseas economies are somewhat weaker than expected while domestic demand is somewhat stronger than expected.” “Taken together, economic growth is moving in line with prior expectations.” “Most members of the BOJ board stuck to the view that there is high possibility that we can achieve a 2% increase in prices in the latter half of fiscal 2015.” “However, a few members maintained the cautious view on prices that they expressed when we issued our outlook report in April.” “Domestic demand is somewhat stronger, while overseas economies are somewhat weaker, compared to our view in April. The balance between domestic and overseas demand has shifted slightly but real GDP growth and prices are likely to develop in line with our projections.”