Takehiro Sato Quotations

We think expectations of higher interest rates are far more likely to strengthen than to retreat significantly.

We look for a rebound due to the recycling of oil money, such as in high-ticket orders from oil-producing nations.

Koizumi's major victory in the election may push forward discussions on raising the consumption tax. But Koizumi is unlikely to change his stance of not raising the tax during his tenure, so any tax increase would be after 2007.

Looking at the manufacturers' output forecasts for January and February, even if the March figures are flat, we should see output be positive again in January-March.

It finally looks realistic to believe we are seeing the end of deflation.

The government may not be able to stop the BOJ from shifting policy after all the speculation that's been built up in financial markets.

We expect the economy to enjoy a lasting recovery. It was a good report overall and it's encouraging to see both manufacturers and non-manufacturers are increasing spending.

This amounts to a declaration that the zero interest rate policy could be abandoned at any time.

Although the disaster of Hurricane Katrina in the United States and the spike in crude oil prices may temporarily hit the Japanese economy in the July-September period, it will probably grow back in the October-December quarter,

It's weaker than expected due to the decline of inventories, but final demand is quite strong. Basically, it's a strong report despite the weak headline number. Consumption and all domestic demand is firm. Exports are also strong, showing that demand is quite balanced.

Governor Fukui and other Bank of Japan senior officials have strengthened their tone recently and show no signs of letting up.