MNI: Policy To Normalise Steadily - BOJ's Tamura

Bank of Japan board member Naoki Tamura said on Wednesday the BOJ must normalise policy slowly but steadily and end its unprecedented large-scale easy settings.

Tamura told business leaders in Aomori City that the outlook for monetary policy will depend on developments of economic, price and financial markets, however, he did not elaborate on when and how the BOJ will advance normalisation.

He added the Bank's recent decision, which ended negative rates and yield curve control, as the first step to normalise monetary policy. (See MNI BOJ WATCH: Ueda Says Rate Path Will Depend On Prices)

Tamura previously called for the end easy policy settings, pointing to their negative side-effects at an early stage.

“The BOJ will manage monetary policy in an appropriate manner, depending on developments of economic, price and financial market situations,” Tamura said. “Given the current outlook for economic activity and prices, the BOJ expects that accommodative financial conditions will be maintained for the time being.”

Tamura added Japan’s economy had recovered moderately, despite some weakness seen in parts. However, he voiced concern over the outlook for private consumption hit by price hikes and capital investment, which lacked momentum.