BOJ: Dovish Nakamura Urges Caution On BoJ Rate Hikes, But Mkt Reaction Limited

BoJ board member Nakamura is speaking in Hiroshima currently. Headlines are crossing with a dovish lean. 

• Nakamura has stated that he is personally not confident on the sustainability of wage growth, while also noting inflation is at risk of missing the 2% target from fiscal 2025 onwards (per RTRS).
• Nakamura also states that his growth forecast is below board median due to a chance consumers may hold off spending and capex could be delayed. He added consumption lack momentum.
• Further adjustments to easy policy settings should be done gradually, Nakamura stated.
• Such comments won't added fuel to near term rate hike expectations. However, Nakamura leans dovish already, so the comments are unlikely to be a huge surprise to the market.
• USD/JPY popped higher initially towards 150.70 as headlines cross, but follow through has been limited (we were last 150.50). JGB futures are holding slightly lower.