Yoshitaka Shindo, Japan’s Minister of State for Economic and Fiscal Policy:
- On GDP data: govt will work closely with BOJ to carry out flexible macroeconomic policy management
- Govt will closely monitor, economic, price situations and financial markets
- The economy expected to gradually recover as wages, income improve
- Need to be mindful of downside risks in overseas economy, market movements
On balance these are upbeat remarks. Bank of Japan rates hikes are expected to remain on track, but they are not expected to come soon:
- Nomura say around 150 is now the ceiling for USD/JPY. Forecast a BOJ rate hike in December
- Barclays forecast the next Bank of Japan rate hike in January 2025 (prior April 2025)
