Ex-BOJ’s Momma: Central bank’s policy seen on hold despite CPI rise
|Bank of Japan (BOJ) policymakers will keep policy unchanged even though consumer inflation will continue rising for a further six months, former BOJ Chief Economist Kazuo Momma predicted, in an MNI interview on Monday.
Additional quotes
"Core CPI this fiscal year on average is expected to rise above the BOJ's median forecast of +2.3%,"
“The BOJ won't be able to exit its strategy of easy policy until inflation stabilizes around 2% for at least two years.”
"Unless the US economy falls into recession, it will not be able to show a path pointing to inflation falling to appropriate levels.”
"The extreme views are that the mismatch will be corrected completely and the mismatch will not be corrected completely (leaving unemployment at 4% or 7% respectively). I'm in the middle of these and the U.S. unemployment rate could rise to around 5%.”
Market reaction
At the time of writing, USD/JPY is trading at 137.17, off the 137.43 highs while still up 0.18% on the day.
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.