BOJ’s Naoki Tamura says its appropriate to keep easy monetary policy at present

Bank of Japan monetary policy board member Naoki Tamura

  • Personally feel sustained, stable achievement of 2% inflation target
    is clearly in sight
  • Appropriate to keep
    easy policy now given uncertainty over prospects for hitting price
  • We are in a phase
    where we need to humbly look at wage, price developments
  • Hoping we will have
    further clarity around January-March next year on prospects for
    hitting price goal
  • Don’t expect 10-year
    yield to rise to 1.0%, new cap is set as protective measure
  • Uncertainty over
    Japan’s economic, price outlook very high
  • BOJ’s step in July
    aimed at making operation of YCC more flexible
  • Corporate
    price-setting behaviour has changed from period of deflation
  • Positive cycle
    between wages, inflation being seen as wage rises improve consumer
  • Japan’s exports,
    output moving sideways, capex rising moderately
  • Japan’s economy
    likely to keep recovering driven by domestic demand
  • Japan’s inflation likely to slow for time being, then accelerate
    moderately again
  • Can’t rule out
    chance inflation may overshoot expectations
  • I believe we can
    expect high wage growth in next year’s spring wage negotiations

Bolding above is mine, this is different from the BOJ … All we have heard from the BOJ so far is that they expect inflation to fall back from around September/October. Tamaura saying here that after a dip inflation is expected to rise again. This is different and may be a (very) early sign the BOJ is positioning to dial back some of its ultra easy policy. .


  • BOJ will take steps to curb excessive rise in interest rates via
    steps such as increase in bond buying, if we see speculative moves
    and sharp rate volatility that deviate from fundamentals

This article was written by Eamonn Sheridan at Source