- BoJ’s Noguchi: Cannot be optimistic about acceleration in wage growth
Market news
BoJ’s Noguchi: Cannot be optimistic about acceleration in wage growth
Bank of Japan (BoJ) board member Asahi Noguchi is back on the wires on Thursday, noting that the central bank “cannot be optimistic about acceleration in wage growth.”
Additional quotes
Inflation is due to import price hikes including currency factors.
There is still distant to achievement of 2% inflation target.
No need to rush into responding to rise in long-term rates.
No need to immedately make adjustment to YCC.
We must bring real wages into positive territory.
Important to bring wage growth closer to 3% but cannot tell when it will happen.
Achivement of 2% inflation target to lead to rate hike.
Rise in long-term rates does not necessarily reflect Japan's inflation expectations, but rather US Interest rate.
Inflation expectations still weak in Japan.
Inflation expectation does not factor in achievement of 2% inflation target.
Inflation of this extent was unexpected.
Wrong to think rises in interest rates could bring forward the timing of policy change.
Market reaction
USD/JPY is defending 149.00 following the above BoJ commentary, almost unchanged on the day.
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