Seiji Adachi is a Member of the Policy Board of the Bank of Japan.
His comments are mixed but he is not expressing any rush to exit easy policy.
- Japan yet to see positive wage-inflation cycle become embedded enough
- Appropriate to patiently maintain easy policy
- If needed BOJ will take additional easing steps
- Steps BOJ took in October to make YCC flexible not aimed at laying the groundwork for policy normalisation
- Japan's inflation expectations heightening moderately
- See risk to Japan's inflation outlook skewed to upside
- Companies starting to shed deflationary price-setting practices
- Hard to predict now whether wage hikes will continue next fiscal year
- Given high uncertainty over global economic outlook, there is risk japan's inflation, wages face downward pressure
- If positive wage-inflation cycle strengthens, that could further push up prices
