BOJ dep gov Himinosays will maintain easy policy until sustained stable 2% CPI achieved

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
  • pass-through from wages to inflation is also returning
  • 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 Source