BOJ’s Kiuchi: BOJ must switch its focus of policy from price stability to financial system stability

Additional comments crossing the wires from Bank of Japan (BOJ) board member Kiuchi are found below:

Additional effects of monetary easing are diminishing

Bank of Japan should position its price target as a medium-, long-term goal and conduct policy flexibly

No notable improvements have been observed in past several years to Japan's potential growth rate, which is still at range of zero-0.5%

Private consumption lacking momentum partly due to disappointingly slow wage growth

Year-on-year rates of change in Japan's price indicators likely to decelerate somewhat over the next several months

 Don't expect Japan's core CPI to hit 2% by fiscal 2018

Important to consider ways to enhance liquidity provision facilities to maintain smooth functioning of markets

BOJ must switch its focus of policy from price stability to financial system stability