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BoJ’s Suzuki: Expect factors that slowed inflation to fade away

More comments flowing in from the Bank of Japan (BoJ) board member Suzuki, as continues to speak about the monetary policy and the US tariffs.

Stability of financial system maintained for now.

Recent bank earnings showed falling loan profits.

Banks have room to boost efficiency but will take time.

If 10-year yields rise slightly the impact on bank lending is limited.

Doubling range for long-term yields not intended to signal rate hike.

Risk BoJ could fall behind curve if accumulated side effects of monetary policy materialize.

Concerns us trade protectionism and retaliatory measures could reduce trade volumes.

Slight rate rise boosts sustainability of BoJ policy.

Will quickly, approximately buy JGBs if rate jumps.

Households' concerns about shrinking population behind tame consumer prices

Important for BoJ to keep strong commitment to meeting price target.

Expect factors that slowed inflation to fade away.

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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