- Must scrutinise underlying economic and price developments in making decisions, on whether the BoJ should swiftly proceed with policy normalisation
- Overseas uncertainty remains, so want to scrutinise how this would affect domestic firms’ wage setting behaviour
- Want to closely watch how FX volatility could affect prices
- Must proceed with monetary policy normalisation with appropriate pace
- No comment on specific long term rate level
- BoJ is ready to step into the market via increase in bond buying, emergency market operations when long-term yields make rapid, irregular moves
- We will get more information including via our surveys on direction of next year’s wage negotiations
- Various indicators show underlying inflation gradually heading towards 2%, we are not at the stage of srutinising whether the level will be firmly embedded
- No big change in my view on underlying inflation, upside inflation risks from when BoJ compiled the quarterly outlook report in October
She’s basically repeating what she already said here. In my opinion, there’s nothing hawkish here as she’s just reaffirming patience as they wait for the spring wage negotiations data. This is also what BoJ Governor Ueda said at the last policy decision.
This article was written by Giuseppe Dellamotta at investinglive.com.
