We raised assessment on private consumption as wages are growingRecent data suggests we may be able to raise outlook on underlying inflationHowever, overseas trends raise uncertainties on thatBut there is no change to our thinking that will keep raising rates if economy moves in line with outlookNot yet able to narrow down Japan’s estimated neutral interest rateWill take next policy step if there is enough evidence that economy fits with outlook
The overall language is not much changed from before, reaffirming that they are still considering to tighten policy again but only if the conditions are right for that. USD/JPY is now keeping flat on the day around 142.70 as the back and forth action continues.
This article was written by Justin Low at www.forexlive.com.
