Hajime Takata, a member of the Board of the Bank of Japan (BoJ), said on Wednesday: “I think the BoJ should patiently keep policy loose given the great uncertainty about the outlook“and added that” at the same time, the BoJ must respond swiftly to uncertainty with an eye on the economic and price outlook“.
Additional comments
The Japanese economy is recovering moderately.
Japan sees the first signs of reaching 2% inflation.
There is a possibility that in Japan there will be a change in public perception that prices and wages will not rise much.
In Japan, there are signs of a change in corporate behavior when setting prices and wages.
There are signs of a reversal in the inflation trend in Japan, as rising wages lift inflation expectations.
Inflation is already exceeding the 2% target set by the BoJ, but there is still a way to go to achieve it in a stable and sustainable manner.
If foreign economies slow down sharply, this could weigh on the Japanese economy.
The output gap has turned positive, it is likely to continue to expand gradually.
Real interest rates are likely to fall further, reinforcing the degree of monetary easing.
The BoJ will closely monitor market developments to achieve bond market stability, with an eye on the advantages and disadvantages of yield curve control.
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.
