Bank of Japan monetary policy board member Nakagawa:
- Appropriate to maintain easy monetary policy for time being
- Signs of change seen
in Japan’s corporate price, wage-setting behaviour - Still not at stage
where we can say japan has stably, sustainably achieved BOJ’s price
target - Monetary easing
involves various side-effects - BOJ will conduct
flexible market operation when 10-year JGB yield moves in range of
0.5-1.0% range with eye on interest rate levels and speed of moves - BOJ’s July
decision has heightened sustainability of its monetary easing
framework - Japan’s capex,
consumption increasing moderately - Japan’s economy
likely to continue recovering moderately - Our baseline
scenario is for consumer inflation to gradually re-accelerate after a
period of slowdown
-
There is chance inflation could accelerate more than expected, though
there is also chance pass-through of costs could moderate - Job market
tightening but outlook for wages also depends on corporate earnings - Price rises for
goods broadening, service prices also rising mainly for accommodation
fees - Must be vigilant to
risk of further slowdown in global growth
Nothing here to indicate any desire to back away from loose policy.