Bank of Japan (BoJ) board member Junko Nagakawa said on Wednesday that the” BoJ is likely to adjust the degree of monetary easing if economy and prices move in line with its projection.”
Additional quotes
Even after July rate hike, real interest rates remain deeply negative, and accommodative monetary conditions are maintained.
If long-term rates spike, BoJ could review its taper plan at its policy meeting as needed.
There is no big change to Japan's economic fundamentals including record profits at Japan firms.
When considering adjusting degree of monetary easing further, we will scrutinize market developments after July rate hike and how that affects economy, prices.
Market reaction
At the time of writing, USD/JPY licks its wounds near 141.80, down 0.42% on the day.
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