Bank of Japan monetary policy board member Nakagawa:
- Given risks, uncertainties, gathering information to make monetary policy decision amid risks and
uncertainties
- Japan’s economy
making steady progress toward achievement of price target
-
If we judge that sustained achievement of price goal foreseen, we
will decide whether or not to tweak ycc, risky asset buying and other
policy means - Some weak signs seen
in consumption data but no big change to trend of moderate increase - Capex continue to
increase moderately as a trend - There is heightening
chance this year’s wave revision will result in fairly high levels
compared with last year - Japan’s economy
likely to continue recovering moderately - Inflation
expectations likely to gradually heighten to levels that align with
our price target - We can foresee
japan’s economy achieving a positive wage-inflation cycle - It is important that
consumer inflation does not sour, and pull japan back to deflation - Main scenario is
that expectations of rising wages will underpin consumer sentiment,
but there is risk that real income will undershoot and weigh on
demand, economy and prices
more to come
This article was written by Eamonn Sheridan at www.forexlive.com. Source