BoJ board member Nakamura: BoJ must patiently maintain monetary easing
|Bank of Japan's board member NakamuraToyoaki said that Japan's economy is still in the midst of recovering from a pandemic-induced slump and that the central bank must patiently maintain monetary easing.
Key comments
Current price rises not accompanied by wage hikes.
Japan is far from situation where wage-inflation spiral becomes a concern.
Japan's economy picking up, likely to recover.Japan's consumer inflation accelerating but likely to slow pace of rise next year as boost from energy, food price hikes dissipate.
Global financial, capital conditions could tighten more than expected depending on fallout from overseas central banks' rate hikes.
Domestic, overseas economies may weaken further if rises in raw material, grain costs are prolonged.No magic wand to boost Japan's growth potential, must draw Japan's economic, wage structure close to that of other advanced economies.
USD/JPY update
As per the pre-Tokyo-open analysis, USD/JPY is meeting a potential resistance area on the daily chart as the bulls move in on the 137.00s.
''If these were to hold, USD/JPY could face supply that may lead to a downside extension. On the flip side, a move in USD/JPY beyond the trendlines and 138.00 will leave the scope for a significant bullish correction with 140.00 and beyond eyed.''
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