- Because we are foreseeing convergence to 2% of underlying component, we’ve been adjusting the degree of easing slowly
- As Japanese automakers have chosen to lower export prices without passing them to US consumers, that has stabilised the volume of auto exports, not creating large negative effects on employment and production here
- There’s strong enough momentum in domestic price and wage dynamics to prevent negative shocks from having a large impact on inflation
- At the moment, not seeing very high risk of inflation, especially underlying inflation accelerating in wake of fiscal stimulus
- Watching the possibility of food inflation and yen weakness altering inflation expectations carefully
This article was written by Giuseppe Dellamotta at investinglive.com.