Watch out for accumulating risks from easy policy – BOJ Ishida

FXStreet (Mumbai) – Bank of Japan (BOJ) board member Ishida is crossing the wires via Reuters warning markets to watch out for risks emerging for Japan’s financial system as a result of QQE while raising concerns over exports and production recovery during summer.

Key Headlines:

Watching for accumulating risks from easy policy

Cycle from income to spending to work steadily

Export, production recovery after summer vital

Don’t see signs of huge financial imbalances, excessive risk-taking building up for now

Don’t think it is appropriate to strip away food costs in gauging Japan price trend as food makes up a quarter of households’ total spending

Expects overseas economies to recover gradually

Must be vigilant to heightening disinflationary trend, build-up of excessive slack in China

Emerging economies somewhat weakening with China’s slowdown weighing on other Asian economies

Inflation seen accelerating towards BOJ’s 2% target as underlying price trend steadily improves

Risks to Japan’s economic outlook are mostly from overseas developments such as emerging economies, Europe’s debt woes and pace of US recovery

Bank of Japan (BOJ) board member Ishida is crossing the wires via Reuters warning markets to watch out for risks emerging for Japan’s financial system as a result of QQE while raising concerns over exports and production recovery during summer.

(Market News Provided by FXstreet)