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BOJ’s Takata says Japan is seeing early signs of hitting 2% inflation

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Bank of Japan’s Takata:

  • says Japan is seeing early signs of hitting 2% inflation
  • says Japan’s economy is recovering moderately
  • says he believes that the Bank of Japan must patiently maintain easy monetary policy given the very high uncertainty on the outlook
  • At the same time, BOJ must respond nimbly to uncertainty with eye on economic, price outlook
  • There’s a chance Japan will see shift in public perception prices and
    wages won’t rise much
  • Japan seeing signs
    of change in corporate wage, price-setting behaviour
  • There is sign of
    change in Japan’s trend inflation as rising wages push up inflation
    expectations
  • Inflation is already
    exceeding BOJ’s 2% target but there is some distance to achieving it
    stably and in sustainable fashion
  • If overseas
    economies slow sharply, that could weigh on Japan’s economy

Takata will hold a news conference later but I don’t have a start time for that.

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