Bank of Japan (BoJ) board member Toyoaki Nakamura said on Thursday that he is “personally (not) sure about the sustainability of wage growth.”
Additional comments
We are in a critical phase where we must review a lot of data, cautiously adjust the degree of monetary support according to the improvement of the economy.
Hopes for a soft landing in the US are rising, but there are signs of an economic slowdown.
Japan’s economy is recovering moderately although showing some signs of weakness.
Consumption in Japan lacks momentum.
I personally see the possibility of inflation not reaching 2% starting in fiscal year 2025.
My growth forecast is below the board’s median due to the possibility that consumers may delay spending and capital investment may be postponed.
Japan’s economy is not yet on a stable growth path.
Structural changes in Japan’s economy require inflation to stably reach 2%, which will take a significant amount of time.
Market reaction
USD/JPY cuts losses on these dovish comments, currently trading at 150.42, still down 0.11% on the day.
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.
