Bank of Japan monetary policy board member Nakagawa:

  • Given risks, uncertainties, gathering information to make monetary policy decision amid risks and uncertainties
  • Japan's economy making steady progress toward achievement of price target
  • If we judge that sustained achievement of price goal foreseen, we will decide whether or not to tweak ycc, risky asset buying and other policy means
  • Some weak signs seen in consumption data but no big change to trend of moderate increase
  • Capex continue to increase moderately as a trend
  • There is heightening chance this year's wave revision will result in fairly high levels compared with last year
  • Japan's economy likely to continue recovering moderately
  • Inflation expectations likely to gradually heighten to levels that align with our price target
  • We can foresee japan's economy achieving a positive wage-inflation cycle
  • It is important that consumer inflation does not sour, and pull japan back to deflation
  • Main scenario is that expectations of rising wages will underpin consumer sentiment, but there is risk that real income will undershoot and weigh on demand, economy and prices

more to come

BoJ's Nakagawa
BoJ's Nakagawa