Bank of Japan Governor Ueda:
-
As we taper bond buying, we will of course be aiming to shrink size
of our balance sheet in ratio to GDP terms - Basic purpose of our
bond tapering would be to allow yields to move more freely driven by
market forces, and revive market functioning - Japan’s economy will
likely see more clear signs of positive wage-inflation cycle as
nominal wages rise - Must be vigilant to
impact of weak yen, import price moves on economy -
Corporate price, wage-setting behaviour clearly changing on record
profits, tightening job market -
Nominal wages likely to rise ahead and gradually lead to positive
real household income, underpin consumption -
Consumption likely
to increase moderately as nominal wage gains accelerate -
For now, don’t
expect japan to experience stagflation
Earlier from Ueda:
- Bank of Japan Gov Ueda expects strengthening in Japan wage-price cycle – higher inflation
- Bank of Japan Governor Ueda says chance we could raise interest rates at July meeting
Meanwhile, USD/JPY is still moving in a small range only:
This article was written by Eamonn Sheridan at www.forexlive.com. Source