20 January 2006, 11:40  BOJ Fukui: Core CPI likely to enter positive trend

Bank of Japan Governor Toshihiko Fukui said Friday core consumer prices are likely to enter a positive trend and that the chances of the central bank ending its current ultra-easy policy will increase toward next fiscal year. Fukui said the BOJ will be watching economic data for signs of decreased risks of prices falling back. But he added that if the economy continues its current recovery, "our basic view (of economic and price conditions) will improve each month. In fact, my view has improved compared with last month," Fukui said. His comments suggest that the conditions for ending the bank's quantitative easing policy are steadily falling into place.

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