BoJ's Iwata: Shift from deflationary mindset may be delayed

FXStreet (Bali) - Kikuo Iwata, Deputy Governor of the Bank of Japan, is speaking at a meeting with business leaders in Miyagi, noting that the removal of the deflationary mindset in Japan may be delayed due to oil price fall.

Additional headlines

Takes time for effect of monetary policy to appear in economy

Domestic demand recovering from weakness after last year’s sales tax hike

Falling oil prices to benefit japan’s economy in somewhat long-term perspective

Must take into account risk that shift from deflationary mindset may be delayed if oil prices exert downward pressure on inflation

Japan’s economy continues to recover moderately as a trend

US economy continues to recover steadily, some weakness seen in European recovery

Some pick-up seen in Japan exports

No change to view on price outlook from forecast made in October last year

Various surveys show expectations that inflation will heighten steadily are maintained, despite recent oil falls