Bank of Japan board member Naoki Tamura delivers a speech.
- Japan’s neutral rate is likely to be around 1% at the minimum
- the path towards ending easy policy is still very long
- Will carefully examine the pros and cons of exiting easy policy
- Must push up short-term rates at least to around 1% by latter half
of our long-term forecast period through fiscal 2026, to stably
achieve 2% inflation target - must raise
short-term rates in several stages while scrutinising how economy,
inflation respond to such steps - will keep close eye
out on financial market moves and their impact on economy,
prices
must raise rates at appropriate timing and in several
stages - pace at which
markets expect BOJ to hike rates is very slow, hiking at such pace
could further heighten upward inflation risk
-
Expect consumption to rise moderately thanks in part to reversal of
one-sided, sharp yen falls - Likelihood of japan
sustainably achieving BOJ’s price target heightening further - Personally see
upward inflation risk heightening
USD/JPY is falling on these comments from Tamura
This article was written by Eamonn Sheridan at www.forexlive.com. Source