BoJ’s Nakamara: Will need some more time before we can modify easy monetary policy

Dhwani Mehta FXStreet

Bank of Japan (BoJ) Board member Toyoaki Nakamura said on Thursday, "we will need some more time before we can modify easy monetary policy.”

Additional comments

Now is a time to be cautious in our policy response.

Current inflation is mostly driven by cost-push factors.

We haven't reached a stage where we can say with conviction that sustained, stable achievement of 2% inflation accompanied by wage growth is in sight.

We are seeing signs Japan will see wage growth exceeding the rate of inflation.

Must patiently maintain current monetary easing for the time being.

Japan's economy recovering moderately.

Expect Japan's economy to recover moderately accompanied by wage increases.

Market reaction

At the time of writing, the USD/JPY pair is keeping its offered tone intact at around 147.00, down 0.14% 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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