BOJ's Tamura says appropriate to maintain monetary easing

Bank of Japan policy board member Tamura

• Appropriate to maintain monetary easing
• We are now in a stage where we need to carefully watch whether japan will achieve positive cycle of rising wages, inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• Will take more time to gauge impact of boj steps taken so far on market function
• For now, we must carefully, humbly look at how markets will stabilise, to what extent market functions will improve
• Widening of yield band in December was not aimed at tightening monetary policy
• Personally feel that the prolonged, massive easing may have curbed the effect of the market mechanism
• financial transmission function being smoothly exerted for now

• At some point in the future, the BOJ must conduct assessment of monetary policy framework, feasibility of its policy by looking at balance of benefits, costs
• But for now, it is appropriate to maintain easy monetary policy
• Japan's economy likely to recovery but uncertainty regarding outlook is extremely high

• What's unique about recent price rises is that it is driven by change in corporate price-setting behaviour
• Japan's consumer inflation likely to slow pace of increase towards latter half of next fiscal year
• There is a risk inflation could overshoot expectations
• Japan has yet to see conditions where our 2% inflation is stably, sustainably achieved

Tamura is keen for a review of Bank of Japan policy:

• BOJ's Tamura says policy should be reviewed, says 2% CPI goal may be too high for Japan