BOJ board member Noguchi said only a possibility the 2% inflation target is in sight

Bank of Japan policy board member Asahi Noguchi spoke over the weekend, with comments meant to convey there is no imminent policy pivot in sight:

• “It’s true the impact of elevated global inflation is reaching Japan’s economy with consumer inflation exceeding the BOJ’s 2% target since the spring of 2022
• but the rise (in inflation) is mostly due to cost-push factors amid higher import prices,”
• To achieve our 2% inflation target, we must see price rises backed by sustained wage increases”
• “While annual spring wage negotiations this year achieved wage hikes unseen in 30 years, we’ve only just reached a stage where the possibility of achieving our target has come into sight”

Noguchi emphasised the same sorts of points made late last week by other officials dampening down expectations of any near-term change in policy:

• BOJ’s Nakamura says it’ll be some time before easy money policy is changed

• Bank of Japan’s Adachi denies speculation of ending negative interest rates
• BOJ official says yet to see positive wage-inflation cycle – easy policy to remain

Prior to those above remarks last week was speculation in Japanerse media of a change coming:

• Japan media: Groundbreaking for the end of BOJ negative interest rates has finally begun

This article was written by Eamonn Sheridan at www.forexlive.com. Source