OECD Sec Gen expects wage pressures will keep inflation around Bank of Japan target level

Earlier from the Organisation for Economic Co-operation and Development:

Follow-up comments from OECD Secretary-General Cormann:

  • Japan’s monetary policy can gradually and modestly begin tightening
  • Inflation is
    expected to slow over course of this year but wage pressure will keep
    it around BOJ’s target
  • In context of
    several decades of very low inflation or deflation, I understand why
    BOJ is very keen to ensure it has all of data necessary to judge
    level of tightening of monetary policy
  • We are perhaps more
    optimistic that inflation will more durably settle around BOJ’s
    target
  • There is scope for
    BOJ to consequently consider level of tightening in monetary policy

Mathias Cormann was once Australia’s Finance Minister. I’m sure Bank of Japan Governor Ueda will bear that in mind when considering this advice.

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