Bank of Japan monetary policy board member Nakagawa:
-
One-sided
yen falls subsided somewhat but rising import prices could affect
consumer inflation with a lag -
Prolonged
inflation overseas could put upward pressure on Japan’s import prices -
Must
be mindful of impact of overseas, domestic market moves on Japan’s
inflation -
Japan’s
exports, output likely to resume uptrend as overseas economies
sustain moderate growth -
Wage
growth likely to accelerate as a trend reflecting rising prices -
Consumption
likely to increase moderately reflecting higher wages, albeit being
affected by rising prices for time being - Expect inflation to gradually accelerate as a trend
- Achievement of wage-inflation cycle is in sight
-
Must be mindful of upside risk to inflation, downside risks
surrounding overseas economies
there is a risk delay in
recovering of consumer sentiment could prevent rising income from
translating into higher spending -
Even
after July rate hike, real interest rates remain deeply negative,
accommodative monetary conditions maintained -
If
long-term rates spike, BOJ could review its taper plan at its policy
meeting as needed -
BOJ
likely to adjust degree of monetary easing if economy, prices move in
line with its projection -
There
is no big change to Japan’s economic fundamentals including record
profits at Japan firms -
When
considering adjusting degree of monetary easing further, we will
scrutinise market developments after July rate hike and how that
affects economy, prices
Yen gaining:
This article was written by Eamonn Sheridan at www.forexlive.com. Source