- The closer we get towards achieving price target, will see increased upside risk to inflation
- Various indicators measuring underlying inflation are very slowly approaching our target
- Given rising prices, the desirable policy mix is no longer as straightforward and simple as expanding fiscal stimulus and loosening monetary policy
- Sees no gap in the view from government, BOJ that monetary support needs to be gradually adjusted to keep price rises in check
- Should not necessarily wait until next year’s spring wage negotiations to gauge wage trend
- Should not judge wage trend and movements just by next year’s spring wage negotiations
- But if labour union demands are realised, it would move economy more towards conditions that BOJ hopes to achieve
He’s just trying to throw out some talk that the BOJ will do what it does and not depending on the government’s fiscal plans. But when it comes to walking the walk, so far we’re still only seeing Takata and Tamura being the only dissenters in favouring a rate hike. USD/JPY is down today though to 155.87 currently, paring the gains from yesterday with sellers resuming near-term control now.
This article was written by Justin Low at investinglive.com.
