Junko Nakagawa, policy board member at the Bank of Japan.
- the Bank's decision to widen the band around its yield target has led to a rise in yields, but its merits of improving biond markets outweighs
- the recent rise in inflation is driven by a spike in prices for a handful of goods, will clearly likely slow in pace of increase
- Japan's economy is likely to continue to expand above potenail growth
- Japan's economy likely to continue expanding above potential growth
- If corporate inflation expectations overshoot, that could prod more firms to pass on higher costs to customers
- There is strong uncertainty on how much wages will rise
- There is risk prices may come under downward pressure if wage hikes do not proceed as much as expected
- Focusing on how much wage hikes will spread among smaller firms
Nakagawa doesn't sound super-keen in doing much to lessen policy accommodation.
