Bank of Japan policy board member Noguchi:
- Biggest focus is whether wage hike momentum will be maintained or not
- Raising of YCC
allowance band does not signify a tightening of monetary policy - If central banks
hold rate hikes and inflation comes down, the risk of hard landing
will be reduced - Japan’s economy
recovering gradually - When inflation
expectations are in a stage of rising, some flexibility is needed to
continue easy policy under YCC - Chinese economy
facing risk of deflation or ‘Japanisation’
-
Need to pay close attention to fiscal, monetary policy response to
low inflation by Chinese authorities from now on - There are signs of
upward price pressures coming down - BOJ’s near-term
mission is to realise a situation where wage growth does not fall
short of inflation as soon as possible through persistent monetary
easing - The trend of passing
on costs for raw materials is widely continuing - Japan needs to shake
off the ‘zero norm’ of prices and wages in order for nominal wage
increase to exceed 2% as a trend - 3% nominal wage
growth would correspond with 2％
inflation target
USD/JPY is barely moving. Waiting on the US CPI tonight is the theme for the day today.