BOJ gov Kuroda: Domestic demand is solid despite recent tax hike; to continue moderate economic recovery - post rate decision press conference
- Positive cycle is working in the domestic economy
- Bank lending is rising moderately; financial conditions are accommodative
- Consumer prices likely to hit 2% around middle of forecast period between FY14-16
- No change in stance; will adjust policy as needed
- QE is having its intended effect
- Expects Q2 GDP to contract (**Note: Q1 GDP was +1.5% vs. +1.0%e due to front-loading of sales tax hike)
- Private consumption stays in firm trend; pullback in retail sales after the sales tax hike is easing; will keep watching impact from sales tax hike
- Halfway to acheiving 2% inflation target
- Sees no change in stock price trend
- No reason for JPY currency (Yen) to appreciate given various factors