Bank of Japan monetary policy board member Nakagawa:
- Appropriate to maintain easy monetary policy for time being
- Signs of change seen in Japan's corporate price, wage-setting behaviour
- Still not at stage where we can say japan has stably, sustainably achieved BOJ’s price target
- Monetary easing involves various side-effects
- BOJ will conduct flexible market operation when 10-year JGB yield moves in range of 0.5-1.0% range with eye on interest rate levels and speed of moves
- BOJ’s July decision has heightened sustainability of its monetary easing framework
- Japan's capex, consumption increasing moderately
- Japan's economy likely to continue recovering moderately
- Our baseline scenario is for consumer inflation to gradually re-accelerate after a period of slowdown
- There is chance inflation could accelerate more than expected, though there is also chance pass-through of costs could moderate
- Job market tightening but outlook for wages also depends on corporate earnings
- Price rises for goods broadening, service prices also rising mainly for accommodation fees
- Must be vigilant to risk of further slowdown in global growth
Nothing here to indicate any desire to back away from loose policy.
