BOJ's Nakagawa says the Bank must continue easing

Bank of Japan Monetary policy Board member Nakagawa, from a speech given August 25 but being published only today:

• BOJ's policy response has exerted intended effects
• Japan's consumer inflation has exceeded 2% but simply hitting 2% alone will not suffice
• What BOJ is aiming at is positive cycle in which wages, inflation rise sustainably driven by increase in corporate profits, improvements in labour market
• BOJ must continue monetary easing to achieve inflation target in sustained, stable manner backed by positive economic cycle
• BOJ will decide at September meeting fate of remaining pandemic-relief programme with eye on impact of pandemic on financial conditions
• Japan's economy, mainly consumption, continuing to pick up as pandemic impact subsides
• Japan's output, exports showing weaknesses due to parts shortages, global supply constraints
• Sales prices in Japan not rising as quickly as raw material costs

Headlines via Reuters

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The key takeaway for BOJ policy ahead are the comments saying that while policy response is having the intended effects, noting that Japan's inflation has exceeded 2%, but this is not enough. BoJ must continue easing to achieve the price target in a sustained and stable manner. That is, the BOJ see current levels of 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 as transitory.