Bank of Japan (BoJ) board member Seiji Adachi said on Wednesday that “if inflation moves sustainably and stably around 2%, the BoJ can guide monetary policy in a way that allows policy rate moves approximately in line with the neutral rate.”
Featured Statements
If core inflation becomes more likely to exceed 2%, the BoJ will raise its policy rate faster than inflation.
Given the uncertainty about the outlook, a specific level of the neutral rate cannot be projected.
Consumption moves in line with the trend projected by the BoJ.
Production, exports and capital investment are strong, but the corporate sector appears to lack momentum.
Economic uncertainties abroad cannot be ignored for the time being.
The reversal of Yen weakness may intensify and put downward pressure on consumer inflation.
I’m somewhat cautious about whether companies will continue with enough pay increases next year.
Given global uncertainties, we must scrutinize developments in next year’s wage negotiations.
The key to next year’s wage development is corporate profits, if external demand and capital investment have room to expand further.
Market reaction
USD/JPY was last seen trading at 149.05, down 0.09% on the day, as the Japanese Yen receives support from these comments.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
