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
- 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: