BoJ Kuroda Confident on Japan Recovery

Bank of Japan Gov. Haruhiko Kuroda on Wednesday stressed his confidence in the country’s economic outlook despite negative effects of the April 1 consumption tax hike to 8 percent from 5 percent.

“Japan’s economy is expected to continue its recovery, weathering the temporary slowdown in economic growth due to the consumption tax hike,” Kuroda said in a speech in New York.

The central bank will make adjustments “without hesitation” if it judges it necessary to take such action in order to ensure that its 2 percent inflation target is attained, he said.

The Japanese economy is expected to continue expanding faster than its potential growth rate because the virtuous cycle from income to spending is going on, Kuroda said, projecting that Japan will swing back to positive growth in July-September.

via Japan News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza