BOJ monetary policy board member speech:
- BOJ must maintain monetary easing, keep interest rates at low levels now as achievement of 2% inflation target remains uncertain
- Desirable for fx rates to move stably reflecting fundamentals
- Excessively sharp fx fluctuations cause demerits, so must be vigilant to impact of fx moves and impact on japan's economy and prices
- There is risk monetary tightening undertaken by central banks could hurt global growth
- Recent rise in japan's consumer inflation due mostly to rising imported goods prices
- Japan's trend inflation, which is more important in guiding monetary policy, remains low
- More companies are passing on rising costs to consumers, this could affect trend inflation
- Cannot say Japan has stably, sustainably achieved BOJ's 2% inflation target yet
- Japan's consumer inflation is likely to fall back below 2% once cost-push factors dissipate
- Japan must see domestic macro-economic factors, such as a steady rise in nominal wages, to push prices to stably achieve BOJ 2% inflation target
- We must see wages rise at a faster pace than the rate of inflation achieve an appropriate level of inflation in a stable manner
Headlines via Reuters
