Masaaki Kanno Policy Quotations

This may heighten expectations in the market of a BOJ policy change next week. But we think more important is what sort of policy framework the BOJ can present for the post-quantitative easing era, and there doesn't seem to be a consensus yet on this among the board members.

More important (than heightened expectations of a policy switch next week) is what sort of policy framework the BOJ can present for the post-quantitative easing era, and there doesn't seem to be a consensus yet on this among the board members.

The trend of Japan's economic recovery won't stop. The central bank seems to become increasingly confident that it can change policy around the middle of 2006.

This (the data) may heighten expectations in the market of a BOJ policy change next week.

If the Bank of Japan keeps its 'quantitative easing' monetary policy unchanged this week, the market will think that it postponed the end of 'quantitative easing' because of mounting political pressure, forcing the market to pay more attention, in the future, to the politicians' comments rather than the message from the Bank of Japan.

The figures were a bit stronger than expected but largely in line. This supports the view that BOJ may shift its policy around April.

We think it more important what sort of policy framework the BOJ can present for the post-quantitative easing era, and there doesn't seem to be a consensus yet on this among the board members.

The Bank of Japan will probably end its zero-rate policy in July or August. If the labor market becomes tighter and gains in wages and consumer prices pick up momentum, the bank may have to make another rate increase by the end of this year.