BOJ New Board Member Sato: Weak yen boosts profits of exporters in general; Uncertainty remains over Middle East situation - inaugural press
Need to watch impact of FX on price trend; high volatility is not desirable - FX should reflect fundamentals - Need to watch both downside risks to growth and upside risks to inflation - I haven’t set myself to support just one specific idea - Underlying inflation is an important concept but not easy to use in guiding policy as we only have an estimate based on various indicators - Former BoJ Chief’s massive stimulus policy has had a certain positive effect such as improving job market, pushing up prices - Did not get any specific instruction from PM Takaichi on policy - One negative aspect of Kuroda’s stimulus was its failure to achieve 2% inflation target **Reminder Sato was confirmed for BOJ board positions back on Mar 23rd and will vote at the next BOJ meeting in late July
Need to watch impact of FX on price trend; high volatility is not desirable - FX should reflect fundamentals - Need to watch both downside risks to growth and upside risks to inflation - I haven’t set myself to support just one specific idea - Underlying inflation is an important concept but not easy to use in guiding policy as we only have an estimate based on various indicators - Former BoJ Chief’s massive stimulus policy has had a certain positive effect such as improving job market, pushing up prices - Did not get any specific instruction from PM Takaichi on policy - One negative aspect of Kuroda’s stimulus was its failure to achieve 2% inflation target **Reminder Sato was confirmed for BOJ board positions back on Mar 23rd and will vote at the next BOJ meeting in late July