Japan’s Kato: Still not in a state where we can permanently call end to deflation

Japanese Finance Minister Shunichi Kato said on Thursday that “Japan is still not in a state where we can permanently call an end to deflation.”

Additional quotes

Japan's economy in state of experiencing supply shortage, rather than lack of demand.

Don't have plan now to modify joint govt, the Bank of Japan (BoJ) statement on ending deflation.

Japan is transiting to an economy where price rises are driven by import costs, to that driven by wage gains.

Judging from underlying inflation and comprehensive look at price gauges.

Market reaction

At the press time, USD/JPY is holding lower ground near 148.15, modestly flat on the day.