Bancos centrales

• Vaccine news starts to reduce the weight of uncertainty

• Today's GDP data was in line with where we thought it would be

• We've had a strong recovery, but there is still a huge gap

• The recovery has been very uneven

• Don't have a date in mind for negative rates review outcome

• We have talked about yield curve control, but it's something I don't see a great need for at the moment

• Great deal of work to be done with banks in deciding if negative rates are doable

• We will have more information on Brexit in December meeting

• But there is still room to cut rates further if needed

• BOJ will not hesitate to ease further if needed

• BOJ has many tools, measures to deploy if needed

• Does not think that price target will be met soon

• BOJ may have to continue easing in the coming years

• Financial system remains stable

• BOJ will ease further without hesitation if needed

• Expects impact of the virus outbreak to weaken in 2H 2020

• Risks are tilted to the downside

• Once the virus is contained, the economy will start recovering

• Uncertainty is high with regards to the timing on when the virus outbreak will end

• There is no change in the BOJ's stance to achieve 2% price target

• Price momentum has been lost for now

• Prices are unlikely to meet 2% target during forecast period

• Expects monetary easing to have synergy with government's fiscal policy

• Increases annual pace of ETF purchases to ¥12 trillion (previously ¥6 trillion)

• 10-year JGB yields target maintained at about 0%

• Introduces new lending program to smooth funding for firms

• Strengthens stance on asset purchases

• To purchase more commercial paper, corporate bonds

• BOJ says will take additional easing measures as needed

• May increase or cut ETF goal depending on situation

• Economic activity likely to remain weak for the time being

• Somewhat weak indicators of inflation expectations have been seen recently

• Need to watch for the impact of oil price drop

• Watching the coronavirus impact very closely

• No risk for China economy to head to stagnation.

• Global economy outlook has become brighter than a few months ago.

• No change to view that Japan economy in moderate growth.

• Expect government stimulus package to have positive impact on prices.

• Will take into account govt stimulus package impact on economy at January rate review, quarterly forecast review.

• Can't deepen negative rates indefinitely as could affect financial institutions.

• Always need to weigh costs, benefits of negative rates and other policy options.

• Lowering super long bond yields could have negative impact on consumer sentiment.

• Must watch costs of prolonged low rates policy.

• Don't think financial intermediation is deteriorating now.

• Expects inflation to gradually pick up towards 2% target

• Risks associated with overseas economies are significant

• Need to watch for impact on business, consumer sentiment

• There are various uncertainties surrounding the economy

• Inflation likely to gradually accelerate towards 2%

• But uncertainties do exist on this forecast

• Central bank will continue to take appropriate policy steps

• Japan's financial system is maintaining stability

Bank of Japan Governor Haruhiko Kuroda said the central bank will "certainly" debate heightening overseas risks at a rate review this week, underscoring concerns among policymakers about the economic fallout of a U.S.-China trade war.

"As for recent overseas economic developments, there are strong downside risks regarding the Sino-U.S. trade friction and China's economy," Kuroda told parliament.

"We'll certainly debate such overseas developments" at the upcoming rate review, he said, but added that the BOJ is already keeping monetary policy ultra-loose.

"The BOJ will guide monetary policy appropriately taking into account the impact overseas economic changes could have on Japan's economic outlook and the momentum for achieving our inflation target," Kuroda said.

Bank of Japan Governor Haruhiko Kuroda said the central bank can deliver more monetary stimulus if necessary.

The BOJ will ease further if the momentum towards its 2% inflation target is lost, Kuroda said in Fukuoka, Japan, where central bankers and finance chiefs from the Group of 20 met over the weekend.

Kuroda, however, said the BOJ did not need to act now, citing the health of the economy.

Asked if the BOJ still had the capacity to do "something big," Kuroda said: "I think so."

The options would be cutting the -0.1% negative rate further, lowering the target for 10-year yields, increasing the monetary base, or boosting asset purchases, he was quoted as saying.

• Domestic economy has entered into a delicate state

• Q1 GDP appears strong but driven by fall in imports, inventories

• Hard to say that economy is recovering

• Japan's fiscal stimulus is improving under QQE

• MMT is questionable as unlimited debt issuance would cause unwelcome inflation

• Central bank could extend forward guidance if it needed to ease more

• BOJ could strengthen forward guidance by committing to keep ultra-easing policy for longer than expected

• Cutting rates, increasing asset purchases or pace of money printing also among steps if BOJ were to ease more

Bank of Japan Governor Haruhiko Kuroda said he would consider additional easing without hesitation if consumer prices lost upward momentum.

Kuroda, speaking in parliament, said the BOJ was committed to keeping short- and long-term rates low until at least the spring of 2020, adding rates could remain low beyond that period.

Kuroda also said the BOJ's forward guidance did not mean it would re-evaluate its policy immediately in spring 2020.

• Global slowdown affecting Japan's exports, production

• Overseas developments will affect Japan for some time

• Japan economy remains in moderate expansion

• Momentum towards achieving 2% inflation target is maintained

• There is a need to achieve 2% inflation target

• Not desirable for economy if only prices rise

• Also need to consider that easing policy could affect financial intermediation

• Need more time to see overall movement in wages

• Spring wage negotiations still ongoing, still too early to see the whole picture

• Central bank excludes temporary factors when gauging inflation trend

• Deflationary mindset of households, companies and corporate streamlining are among factors weighing on inflation

• BoJ should do utmost to hit inflation target now

• Exit strategy talk should start when inflation target is in sight

• BoJ can exit smoothly when it is needed

• Will communicate to markets the strategy for exiting at some point