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BoJ’s Nagakawa: If outlook realized, the BoJ will continue to raise interest rate
Bank of Japan (BoJ) board member Junko Nagakawa said on Thursday that “if the outlook for economic activity and prices is realised, the BoJ will continue to raise interest rate and adjust degree of monetary accommodation.”
Additional quotes
- US tariff policy, overseas economic and market developments among risks to Japan’s economic outlook.
- Uncertainty over U.S. tariffs could affect household, corporate sentiment, Japan’s economy and prices.
- Excessive market volatility may put downward pressure on Japan’s economy.
- Companies still in process of passing on raw material costs.
- Considering current real interest rate levels, future monetary policy conduct will depend on developments in economic activity and prices as well as financial conditions.
- There is risk wage pressure may strengthen further, translated into sales prices.
- Worsening consumer sentiment could disrupt cycle of rising income and expenditure.
Market reaction
At the press time, USD/JPY is off the highs, trading 0.60% higher on the day at 142.75.
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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