So they downgraded their growth forecasts I read but also operating inflation for this year. Their forecast now at two
point three percent. I have to wonder is this any sort of precursor for tightening or how should we be interpreting these
forecasts now. Yes. So this inflation adjustment is not so nice and easy to just sit in front of me
and the inclination. Next year we expect to see some decline to 1 percent from April. So it just think the end is not going to
impact Beetlejuice money NYSE status. We did hear them mention the yen. No surprise with it at this 24 year low. Very much
saying that we are saying that moves in effects and they're going to continue to pay attention to that. Your view I guess
here and on how as well effective a yen intervention could be from the BOJ at this point. So it's true that the yen's
depreciation is increasingly impacting on Japan's inflation. And then in the past two 18 enthusiasm 21 last year it's expanding.
They need to target don't to us. You don't want to buy a cent. So you go to villages able to raise and then expand. You stay in
the target range. But Mr. Kuroda denied this expansion of the target range last monetary policy meeting after Q decisions. So
I assume that he's going to make and see. But if you're in a situation adults for example reduced the uncertainty throughout
the G C yes he may. You know it's still possible for the BFG to show some flexibility by expanding the study branch. And I want
you to listen to what I say. You don't want to listen up when Citi like the set.
At number one inflation is rising. So I do agree with Governor Carter's assessment that inflation is rising but for the wrong
reasons right as energy prices commodity prices and he need to see wages rise to think this is sustainable inflation increase.
And number two that all you still need the stimulus right now because small businesses need it. And because the ability to
finance the large government deficit is also very important here. And that's why you need to keep these bond yields and even
short term rates under control. Yeah. So as you said DOJ is looking at the demand driven information and that's nothing
happening right now. But you know as I said DOJ in the past could introduce flexibility by expanding that they target
targeted dance so they can still do it. But I think at this moment for example last month there was a lot of speculation
driven by floating hedge funds. So knowing the market is so uncertain right now probably the yield you want to maintain data
school and reduce any uncertain DVD to do just next. So as you said the algae want to see an increase in demand reboot. And so
then if you've got information excluding crash food and energy is that Japan's inflation is still just that. They don't want 8
percent. You know it's barely deepening from your estimations yet. The markets and traders continue to try to put a timeframe
on when the big day is going to have to ship policy. You mentioned about how there could be some tweak on the yield curve
control. How what do you look for in terms of what how to gauge the timing of this shift. Do you think it's pushing forward now
that sort of forecast or should we actually be pushing back that forecasts for any change of policy given the recession risk out
there. So you know at this moment I really do not see any strong reason
for the eulogy to expand the range at this moment because this means a leading interest rate.
You know when the global industry is under the 19 being you know increasing Japan's you know interesting. I mean the bus from the
Japan's you know did this. And because I think the Japanese mortgage floating rate base. So it's not very good for Japan's
economy. So maintaining status the is at this best lethargy of its moment. But at the same time you know DOJ introduced
flexibility all the time. So if this uncertainty about Fed policy and a global condition do get the Ukraine crisis you know
it's still possible that Eugene they need to do some additional flexibility. So I think we still have delays throughout the
interim GCA and certainly flexibility when they're saying here that they are still looking at potentially adding stimulus as
you say which is different to what we're seeing from other central banks. But they are saying the impact of Covid softening
on the overall economy. Just tell us how you are seeing the economy hold up how the
consumer is holding up. So right now Japanese services sector that is on the recovery process. In January much of the
bumblebee GDP showed detainees Kobe and those these troops are growing now. So we started to see a pickup in the services
industry and big guys are able to be Japan now. So you know statistic dads
are doing okay. As we saw the Tom Keene survey dealers are increasing sentiment among the services industry. Lot of
manufacturing sector are not doing well because of global uncertainty shortage in the semiconductor chips in material
materials and energy high cost. So it's study sectors are doing well. So although I think does have positive economic growth for
April. Joe. And shifting from negative growth in the classical attacks do you think we also don't sleep a cent so it's not
excluding back. Sorry. Do you agree with this view that you know as government Governor Kuroda gets ready to finish a second five
year term in April just months from now that this is when the VHA supported by the prime minister and his team will open the
door to finally moving away for an extraordinary stimulus finally saying we don't need our key rate at negative and we
don't need to old controls that. When you see it happen do you think that'll be part of the change over of the heads of the
Bank of Japan. To be honest they don't seem to be any big big changes even after Mr Rudd leaves in April. Because when they
when we see the Japanese economy it's not really strong potential economic growth see just below 20 percent. The other
big demand in consumption is not very strong. You know we don't yet see a strong pick up in English wages because after the. The
growth is very stark ish. So in this situation no interest rate makes sense in Japan. So probably Gene may increase the
liquidity. It's possible. And there may be some changes on this target range and also negative. Interesting. But I don't think
there will be any big changes in your studying Japan's situation.