Bank of Japan board member Naoki Tamura delivers a speech.

  • Japan's neutral rate is likely to be around 1% at the minimum
  • the path towards ending easy policy is still very long
  • Will carefully examine the pros and cons of exiting easy policy
  • Must push up short-term rates at least to around 1% by latter half of our long-term forecast period through fiscal 2026, to stably achieve 2% inflation target
  • must raise short-term rates in several stages while scrutinising how economy, inflation respond to such steps
  • will keep close eye out on financial market moves and their impact on economy, prices
    must raise rates at appropriate timing and in several stages
  • pace at which markets expect BOJ to hike rates is very slow, hiking at such pace could further heighten upward inflation risk
  • Expect consumption to rise moderately thanks in part to reversal of one-sided, sharp yen falls
  • Likelihood of japan sustainably achieving BOJ's price target heightening further
  • Personally see upward inflation risk heightening
Naoki Tamura boj Bank of Japan

USD/JPY is falling on these comments from Tamura