MNI BRIEF: BOJ To Adjust Easy Policy Cautiously - Nakamura
MNI (TOKYO) - Bank of Japan board member Toyoaki Nakamura said on Thursday the BOJ favoured cautious adjustments to its easy policy driven by economic recovery considered against various data, noting the inflation rate will likely not reach 2% in fiscal 2025.
“I’m not confident of the sustainability of wage hikes,” Nakamura told business leaders in Hiroshima City.
Nakamura, a dovish board member, was against scrapping the negative interest rate policy in March and raising the policy rate to 0.25% in July. He warned household savings could strengthen and business could delay capital investment.
Japan’s economy has not been on a recovery trend, although Q3 GDP rose q/q, he added.
MNI reported this week senior BOJ officials are focusing strongly on political opposition to rate hikes over economic data. (See MNI POLICY: BOJ’s Political Concerns Slowing Hikes)