BOJ’s Kuroda: Demand in Japan has not recovered as rapidly as it has in the US

“Demand in Japan has not recovered as rapidly as it has in the US,” the Bank of Japan (BOJ) Governor Haruhiko Kuroda said in a statement on Wednesday.

Additional quotes

Japan’s economy has picked up.

 High US growth has supported growth in economies across the globe.

If Japan can improve public health and the economy with vaccination certificates the services sector recovery will be more pronounced.

Recent low inflation in Japan is mainly due to unusual factors such as cuts to mobile fees.

Excluding such factors Japan’s CPI is not as weak as headline figures suggest.

Supply-side constraints in Japan not as severe as in the US, no pressing need for firms to raise wages and selling prices.

Central banks have a role to play in addressing climate change.

Climate change may have large impact on economic activity, prices, and financial conditions in long term.

Many Japanese firms have not been able to fully pass on recent rises in commodity prices.

To completely eradicate Japan’s deflationary mindset, cooperation of firms and households necessary.

Market reaction

USD/JPY is holding the higher ground near 111.60, up 0.12% on the day, benefiting from the US dollar gains.

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