BOJ Nakamura says Japan is no longer in deflation, but that mindset yet to be eradicated

Bank of Japan monetary policy board member

  • BOJ must patiently maintain easy policy for time being
  • Japan’s economy no
    longer in deflation but deflationary mindset is yet to be eradicated
  • Current rise in
    deflation driven by pass-through of import costs, yet to be driven by
    wage gains
  • Must scrutinise whether small, midsize firms are making progress in
    earning enough profits to sustain wage rises
  • Tightening monetary
    policy before rise in sales prices lead to wage gains would curb
    demand, weigh on companies’ ability to earn profits
  • Tweak to monetary
    policy needs scrutiny of economic conditions, cautious approach
  • Need more time to
    shift to monetary tightening
  • Sustainable, stable
    achievement of price target yet to be foreseen
  • Japan’s economy
    recovering moderately

Nothing here from Namura indicating he is of the mindset to trim back the Bank’s super-easy monetary policy.

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