BOJ Governor Kuroda expects the Japanese economy to recover at a moderate pace, noting that the pace of recovery is the second largest expansion since the outbreak of the war. His most prominent comments on economic developments include:
- Japan is experiencing more variation between recovery and inflation than anywhere else.
- Inflation expectations are expected to improve over the medium to long term.
- The deflationary mentality was more in-depth than expected.
- The output gap approaches the closure.
- The Bank of Japan will continue its expansionary monetary policy.
- Most of the risks facing the Japanese economy are foreign.
- It is not easy to eliminate the deflationary mentality of families and businesses.
- There is some evidence of improved wage growth.
