Bank of Japan monetary policy board member Takata comments crossing news wires.
USD/JPY a litte higher on the loose policy comments.
- Inflation is higher due to rising raw material costs, but Japan has yet not yet experienced sustained price increases accompanied by wage increases
- CPI is thus likely to have a lower pace of increase in the second half of fiscal 2023
- if the economic slow down overseas intensifies that could be a weight on the economy of Japan and prices
- the outlook for Japanese wage negotiations is difficult to forsee due to economic uncertainty overseas
- if firms remain cautious about hiking pay that could prevent Japan from having a sustained rise in inflation
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Japan's fiscal year 2023 begins on April 1.
