BOJ Gov Kuroda: Virtuous cycle is working as domestic economy is recovering moderately
- BOJ easing is having the intended effect
- Domestic economy continuing to exceed potential as a trend
- Private consumption is in a firm trend; household confidence is improving
- Employment and income situation recovering steadily
- Can still see effects of reaction to the April sales tax hike but expected to wane gradually
- CPI likely to reach 2% target in middle of projection period
- Exports are weakening; recovery in durable goods spending slow
- Hopes Japanese new Cabinet will take appropriate measures on economy
- Fundamentally the USD seen firming against the JPY and EUR currencies as US economy steadily recovers