BoJ Gov Kuroda: BoJ ended QE too early last time

Headlines continue to pour in from the BOJ Governor Kuroda's confirmation hearing in the Lower house as he now speaks on the inflation outlook.

Key quotes:

   •  Don't think labour shortages are restricting economy's growth now but could be factor for restricting growth potential in long-run
   •  Inflation in US, Europe above 1 pct, expectations anchored at 2 pct
   •  Inflation expectations in Japan however are not that high
   •  Prices rising a bit, but still moving weakly
   •  Not just aiming for cost-push inflation, but also demand pulled
   •  Not that easy to raise BoJ’s yield target just because inflation reaches 1 pct 
   •  I am cautious of raising yield target even if markets put upward pressure on yields reflecting rises in Japan inflation, exit from easy policy by other central banks
   •  Am cautious or negative on raising the '0' pct JGB target now
   •  BoJ was partly responsible for prolonged deflation
   •  Do not think BoJ was the cause for Deflation 
   •  Prices are not determined by monetary policy alone
   •  BoJ ended QE too early last time
   •  BoJ aim is prices, but do not ignore employment