Watch out for accumulating risks from easy policy – BOJ Ishida

FXStreet (Mumbai) - Bank of Japan (BOJ) board member Ishida is crossing the wires via Reuters warning markets to watch out for risks emerging for Japan's financial system as a result of QQE while raising concerns over exports and production recovery during summer.

Key Headlines:

Watching for accumulating risks from easy policy

Cycle from income to spending to work steadily

Export, production recovery after summer vital

Don't see signs of huge financial imbalances, excessive risk-taking building up for now

Don't think it is appropriate to strip away food costs in gauging Japan price trend as food makes up a quarter of households' total spending

Expects overseas economies to recover gradually

Must be vigilant to heightening disinflationary trend, build-up of excessive slack in China

Emerging economies somewhat weakening with China's slowdown weighing on other Asian economies

Inflation seen accelerating towards BOJ's 2% target as underlying price trend steadily improves

Risks to Japan's economic outlook are mostly from overseas developments such as emerging economies, Europe's debt woes and pace of US recovery