Bank of Japan Deputy Governor Himino:
-
BOJ will patiently maintain easy policy until sustained, stable
achievement of price target is in sight - Japan’s financial
system is likely resilient enough to weather stress from transition
to higher interest rates
-
If we do not get the timing exit procedures wrong, the impact of a
positive wage-inflation cycle will likely benefit wide range of
households, companies
-
Must make appropriate decision on exit timing, procedure by
scrutinising wage, inflation developments -
BOJ must achieve
situation where inflation slows ahead, but not too much
- Japan is seeing steadily changes in price, wage behaviour
-
Solid progress is observed in the transformation of firms’ wage- and
price-setting behaviour -
price rises beginning to affect
wages -
pass-through from wages to inflation is also returning
somewhat -
without virtuous cycle between wages and prices, japan
will most likely revert to the deflationary state in the past
USD/JPY is little changed around 147.25
This article was written by Eamonn Sheridan at www.forexlive.com. Source