Masaaki Kanno Quotations

We are seeing a series of good indicators pointing to solid recovery: improving production, improving exports, improving employment and improving spending.

We are seeing a good, healthy cycle now. One possible risk factor, going forward, is the possibility of overheating.

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.

On major economic policies, the campaign has made clear that both parties share the same basic concepts of reform and small government.

I expect salaried workers' incomes to rise after April. This will push the deflator up more.

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.

We can expect a good 3 percent growth in calendar 2006.

We think a decision to end quantitative easing and a new framework will have to come out together as a package.

Japan will maintain growth driven by demand at home, particularly by solid consumer spending, as the labor market is becoming tight, propping up wages and household incomes. Upward pressure on prices will intensify next fiscal year, when the employment situation will become much tighter.

This shows the increase in spending is not due to a one-off factor. We are seeing consumers becoming more and more confident about the future economic trend.

With core consumer prices set to rise steadily above zero and today's GDP report confirming that a steady recovery is at work, there is almost no obstacle left for the Bank of Japan in ending its super-loose monetary policy.

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

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.

Consumption is strong and wages are rising, so the CPI trend is improving. In six months, deflation will be over.

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.

The strength of domestic demand seems real. I believe Japan will achieve roughly three percent growth this year.

Oil prices are high but they are showing signs of relative stability.

This is a new trend in Japanese politics. People are increasingly voting on the policies of individual parties. Now the manifestos of the different parties have become very clear.

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.

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.

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