BOJ’s Adachi says inflation has risen faster than I expected

Seiji Adachi is Member of the Policy Board of the Bank of Japan.

  • inflation has risen faster than I expected
  • its too early to tweak monetary policy
  • our baseline price scenario is bound with uncertainty
  • there are upside and downside risks to our price outlook, and longer-run downside risks appear to be bigger
  • such risks on price outlook must be taken into account in deciding whether tweaking monetary policy would be appropriate
  • Must be mindful to downside risks surrounding Japan’s economy given
    risks regarding global economy
  • There is also need
    to pay certain attention to upside risks to price outlook
  • In any case, BOJ must scrutinise whether Japan on path toward sustainably, stably
    achieving price target
  • Appropriate to
    continue monetary easing under yield curve control framework
  • consumer inflation accelerating at faster pace than I initially expected
  • focusing on to what extent wage hikes will lead to increase in services prices

USD/JPY is doing very little on these comments.

Earlier from the Bank of Japan:

And still to come later is Bank of Japan Governor Ueda speaking

  • At 0630 GMT, 0230 US Eastern time

This article was written by Eamonn Sheridan at Source