- BoJ’s Nakagawa: Easy monetary policy is important for the time being, supports economy
Market news
BoJ’s Nakagawa: Easy monetary policy is important for the time being, supports economy
Bank of Japan (BoJ) board member Junko Nakagawa is making his scheduled speech on Wednesday, noting that “easy monetary policy is important for the time being, as it supports the economy.
Additional comments
BoJ will maintain easy policy while taking steps to curb side-effects.
Recent rise in inflation driven by spike in prices for a handful of goods, which will likely clearly slow their pace of increase.
The Bank's decision to widen the band around its yield target has led to a rise in yields, but its merits of improving biond markets outweighs.
Japan's economy is likely to continue to expand above potential growth.
If corporate inflation expectations overshoot, that could prod more firms to pass on higher costs to customers.
There is strong uncertainty on how much wages will rise.
There is risk prices may come under downward pressure if wage hikes do not proceed as much as expected.
Focusing on how much wage hikes will spread among smaller firms.
BoJ will maintain easy policy while taking steps to curb side-effects.
Recent rise in inflation driven by spike in prices for a handful of goods, which will likely clearly slow their pace of increase.
Market reaction
USD/JPY is defending minor bids on the above dovish BoJ commentary. The pair is adding 0.06% on the day to trade at 136.27, as of writing.
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