The Bank of Japan (BoJ) board member Toyoaki Nakamura said on Thursday that based on current data, it is appropriate to maintain policy intact for the time being, per Reuters.
Key quotes
Closely watching real wages
Warns Japan's economy at critical juncture
Uncertainty remains on sustainability of wage increases
Weak impact of rising wages on prices
Japan's economy recovering moderately albeit some weak signs
My view is that inflation may not reach 2% from fiscal 2025 onward if consumption weakens
Will focus on whether inflation-adjusted consumption turns positive, in deciding future monetary policy
Based on current data, it is appropriate to keep policy intact for time being
Pass-through of wages to inflation remains weak but closely monitoring situation
Households' purchasing power is weak, solid rise in disposable income is needed for households to boost spending
Personally not confident that wage growth will be sustained
Want to check whether capex growth will become broad-based, as some smaller firms appear to be delaying investment due to supply constraints
Structural changes in economy are necessary for Japan to sustainably, stably achieve BOJ's 2% inflation target
Market reaction
At the time of writing, USD/JPY is trading 0.27% lower on the day at 155.66.
