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BoJ’s Noguchi: Timing of next rate hike is data dependent

Bank of Japan (BoJ) board member Asahi Noguchi said on Thursday that the “timing of next rate hike is data dependent.”

Additional quotes

No comment on PM Shigeru Ishiba’s remarks on monetary policy .

Expect the Bank of Japan (BoJ) to adjust degree of monetary policy if economy moves in line with forecast, even at a very slow pace.

Personally feel we need to proceed very carefully in adjusting degree of monetary support.

Can't say now when the BoJ will raise rates again.

Need to scrutinize whether consumers' sentiment will shift to one where they can swallow price hikes.

As Governor Ueda has said, we have time to scrutiniae economic developments, before contemplating rate hike.

Current financial environment is sufficiently easy.

One-sided, sharp Yen fall seen in July has subsided.

Upside inflation risk from weak Yen has subsided.

Outlook of trend inflation, wages key to BoJ’s future policy decisions.

Very important that momentum seen in this year's wage negotiation is sustained next year.

Believe it's safe to expect the US economy to make soft landing, fed to gradually lower rates.

BoJ’s 2% inflation target is a framework agreed upon between BoJ, govt.

We will respect that framework in guiding monetary policy, and communicate closely with govt.

We must acknowledge politicians' remarks on monetary policy as likely reflecting public's view.

See need to improve BoJ’s communication to avoid repeat of confusion that happened in July.

One idea would be to set opportunities for board members to express their views more frequently in public.

Japan's economy can weather yen rise, as long as it's gradual.

Market reaction

The Japanese Yen is recovering further ground on the BoJ official’s latest comments, which eases rate hike concerns. USD/JPY was last seen trading at 146.55, still up 0.07% on the day.

Author

Dhwani Mehta

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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