Private demand to rise on negative rate effects – BOJ’s Nakaso

Bank of Japan (BOJ) deputy governor Hiroshi Nakaso is now crossing the wires, backing the case for accommodative policy stance, while expecting that the Government efforts to stimulate growth should start materializing.

Key Quotes:

Wants to see govt growth strategy take off

Need easing, structural reform for sustained growth
Need to raise japan labor productivity

Deposit rates won't become negative

Lower yield curve hurts lender profits

Private demand to rise on negative rate effects

More quantity, quantative steps future options

Core CPI to reach 2% around 1st half of fy17

Drop in int rates to steadily affect econ, prices

Underlying price trend to rise steadily