BoJ’s Nakagawa: Still not at stage where Japan has stably, sustainably achieved price target
|Early Thursday morning in Asia, Bank of Japan (BoJ) policymaker Junko Nakagawa crossed wires via Reuters while defending the Japanese central bank's current monetary policy.
BOJ’s Nakagawa initially defended the easy monetary policy by stating that it is appropriate to maintain easy monetary policy for time being while adding that they’re still not at stage where we can say Japan has stably, sustainably achieved BoJ price target.
The policymaker highlighted the various side-effects of the monetary easing while also saying that the BoJ will conduct flexible market operation when 10-year Japanese Government Bond (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,” added BoJ’s Nakagawa while highlighting expectations of witnessing moderate economic recovery at home and fears of further slowdown in the global growth.
The policymaker showed indecision about inflation conditions while saying that there is chance inflation could accelerate more than expected, though there is also chance pass-through of costs could moderate.
USD/JPY retreats
Following the comments from BoJ policymaker Nakagawa, the USD/JPY pair retreats from the yearly high of 147.87 to 147.57 by the press time.
Also read: USD/JPY prints fresh YTD peak around 147.85, intervention fears might cap gains
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.