BOJ’s Nakagawa says its appropriate to maintain easy monetary policy for the time being

Bank of Japan monetary policy board member Nakagawa:

  • Appropriate to maintain easy monetary policy for time being
  • Signs of change seen
    in Japan’s corporate price, wage-setting behaviour
  • Still not at stage
    where we can say japan has stably, sustainably achieved BOJ’s price
  • Monetary easing
    involves various side-effects
  • BOJ will conduct
    flexible market operation when 10-year JGB yield moves in range of
    0.5-1.0% range with eye on interest rate levels and speed of moves
  • BOJ’s July
    decision has heightened sustainability of its monetary easing
  • Japan’s capex,
    consumption increasing moderately
  • Japan’s economy
    likely to continue recovering moderately
  • Our baseline
    scenario is for consumer inflation to gradually re-accelerate after a
    period of slowdown
  • There is chance inflation could accelerate more than expected, though
    there is also chance pass-through of costs could moderate
  • Job market
    tightening but outlook for wages also depends on corporate earnings
  • Price rises for
    goods broadening, service prices also rising mainly for accommodation
  • Must be vigilant to
    risk of further slowdown in global growth

Nothing here to indicate any desire to back away from loose policy.

This article was written by Eamonn Sheridan at Source