Bank of Japan board member Naoki Tamura delivers a speech.
Japan’s neutral rate is likely to be around 1% at the minimumthe path towards ending easy policy is still very longWill carefully examine the pros and cons of exiting easy policy
Must push up short-term rates at least to around 1% by latter half
of our long-term forecast period through fiscal 2026, to stably
achieve 2% inflation targetmust raise
short-term rates in several stages while scrutinising how economy,
inflation respond to such stepswill keep close eye
out on financial market moves and their impact on economy,
prices
must raise rates at appropriate timing and in several
stagespace at which
markets expect BOJ to hike rates is very slow, hiking at such pace
could further heighten upward inflation risk
Expect consumption to rise moderately thanks in part to reversal of
one-sided, sharp yen fallsLikelihood of japan
sustainably achieving BOJ’s price target heightening furtherPersonally see
upward inflation risk heightening
USD/JPY is falling on these comments from Tamura
This article was written by Eamonn Sheridan at www.forexlive.com.
