Seiji Adachi is a Member of the Policy Board of the Bank of Japan.
His comments are mixed but he is not expressing any rush to exit easy policy.
- Japan yet to see positive wage-inflation cycle become embedded enough
- Appropriate to
patiently maintain easy policy - If needed BOJ will
take additional easing steps - Steps BOJ took in
October to make YCC flexible not aimed at laying the groundwork for
policy normalisation
- Japan’s inflation expectations heightening moderately
- See risk to Japan’s
inflation outlook skewed to upside
- Companies starting to shed deflationary price-setting practices
- Hard to predict now
whether wage hikes will continue next fiscal year - Given high
uncertainty over global economic outlook, there is risk japan’s
inflation, wages face downward pressure - If positive
wage-inflation cycle strengthens, that could further push up prices
This article was written by Eamonn Sheridan at www.forexlive.com. Source