BoJ board member Nakagawa:
- U.S. tariff policy, overseas economic and market developments among risks to Japan’s economic outlook
- Uncertainty over U.S. tariffs could affect household, corporate sentiment, Japan’s economy and prices
- Excessive market volatility may put downward pressure on Japan’s economy
- Companies still in process of passing on raw material costs
- Considering current real interest rate levels, future monetary policy conduct will depend on developments in economic activity and prices as well as financial conditions
- There is risk wage pressure may strengthen further, translated into sales prices
- Worsening consumer sentiment could disrupt cycle of rising income and expenditure
- If outlook for economic activity and prices is realised, BOJ will continue to raise interest rate and adjust degree of monetary accommodation
Nothing of surprise here from board member Nakagawa.
This article was written by Eamonn Sheridan at www.forexlive.com.