Bank of Japan monetary policy board member Nakagawa:
- Appropriate to maintain easy monetary policy for time being
- Signs of change seen
in Japan’s corporate price, wage-setting behaviour - Still not at stage
where we can say japan has stably, sustainably achieved BOJ’s price
target - Monetary easing
involves various side-effects - BOJ will conduct
flexible market operation when 10-year JGB yield moves in range of
0.5-1.0% range with eye on interest rate levels and speed of moves - BOJ’s July
decision has heightened sustainability of its monetary easing
framework - Japan’s capex,
consumption increasing moderately - Japan’s economy
likely to continue recovering moderately - Our baseline
scenario is for consumer inflation to gradually re-accelerate after a
period of slowdown
-
There is chance inflation could accelerate more than expected, though
there is also chance pass-through of costs could moderate - Job market
tightening but outlook for wages also depends on corporate earnings - Price rises for
goods broadening, service prices also rising mainly for accommodation
fees - Must be vigilant to
risk of further slowdown in global growth
Nothing here to indicate any desire to back away from loose policy.
This article was written by Eamonn Sheridan at www.forexlive.com. Source