Bank of Japan (BoJ) Governor Kazuo Ueda is out with his thoughts following the hot Japanese inflation data, released earlier this Friday.

Key quotes

“Japan inflation likely to slow back below 2% in the middle of the current fiscal year.”

“Then likely to rebound thereafter through uncertainty regarding outlook is very high.”

“Current inflation rise is due to external, cost-push factors; not demand strengthening.”

“Tightening monetary policy in response to this would hurt the economy.”

“Inflation expectations must heighten for inflation to hit 2% sustainably.”