BOJ board member Nakagawa says steady progress being made towards inflation target

Bank of Japan monetary policy board member Nakagawa:

  • Given risks, uncertainties, gathering information to make monetary policy decision amid risks and
  • Japan’s economy
    making steady progress toward achievement of price target
  • If we judge that sustained achievement of price goal foreseen, we
    will decide whether or not to tweak ycc, risky asset buying and other
    policy means
  • Some weak signs seen
    in consumption data but no big change to trend of moderate increase
  • Capex continue to
    increase moderately as a trend
  • There is heightening
    chance this year’s wave revision will result in fairly high levels
    compared with last year
  • Japan’s economy
    likely to continue recovering moderately
  • Inflation
    expectations likely to gradually heighten to levels that align with
    our price target
  • We can foresee
    japan’s economy achieving a positive wage-inflation cycle
  • It is important that
    consumer inflation does not sour, and pull japan back to deflation
  • Main scenario is
    that expectations of rising wages will underpin consumer sentiment,
    but there is risk that real income will undershoot and weigh on
    demand, economy and prices

more to come

This article was written by Eamonn Sheridan at Source