- Recent inflation driven by food prices, could hurt the economy
- Will work closely with BOJ to ensure Japan sees inflation driven by wages
- Hopes for BOJ to conduct policy so that Japan sees sustainable achievement of price target
- With the wrong policies, there is a risk Japan can slide back into deflation
- And that will then hurt consumption, wage growth, and capex
- The government's job is to create an environment where firms can continues with strong wage hikes
She's being rather explicit in trying to corner the BOJ here, especially with that remark on adopting the "wrong policies". Oof. It's tough to see how the BOJ would want to push forward with their next rate hike now with December surely off the table. USD/JPY continues to reprice higher in a push to 154.75 currently, up 0.4% to its highest since February.
