Bank of Japan monetary policy board member Naoki Tamura
- Personally feel sustained, stable achievement of 2% inflation target is clearly in sight
- Appropriate to keep easy policy now given uncertainty over prospects for hitting price goal
- We are in a phase where we need to humbly look at wage, price developments
- Hoping we will have further clarity around January-March next year on prospects for hitting price goal
- Don't expect 10-year yield to rise to 1.0%, new cap is set as protective measure
- Uncertainty over Japan's economic, price outlook very high
- BOJ's step in July aimed at making operation of YCC more flexible
- Corporate price-setting behaviour has changed from period of deflation
- Positive cycle between wages, inflation being seen as wage rises improve consumer sentiment
- Japan's exports, output moving sideways, capex rising moderately
- Japan's economy likely to keep recovering driven by domestic demand
- Japan's inflation likely to slow for time being, then accelerate moderately again
- Can't rule out chance inflation may overshoot expectations
- I believe we can expect high wage growth in next year's spring wage negotiations
Bolding above is mine, this is different from the BOJ ... All we have heard from the BOJ so far is that they expect inflation to fall back from around September/October. Tamaura saying here that after a dip inflation is expected to rise again. This is different and may be a (very) early sign the BOJ is positioning to dial back some of its ultra easy policy. .
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- BOJ will take steps to curb excessive rise in interest rates via steps such as increase in bond buying, if we see speculative moves and sharp rate volatility that deviate from fundamentals
