BoJ’s Nagakawa: BoJ likely to adjust degree of monetary easing if economy, prices move in line with projection

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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