BOJs Nakamura: Not confident about sustainability of wage growth

December 05, 2024 at 01:38AM
BOJs Nakamura is speaking and says:

Personally not confident about sustainability of wage growth.

We are at a critical phase where we must check many data, cautiously adjust degree of monetary support in accordance of improvement in economy.

Hopes of US soft landing heightening, but there are signs of economic slowdown.

Japan’s economy recovering moderately although showing some week signs.

Japan’s consumption lacks momentum.

I personally see chance of inflation may miss 2% from fiscal 2025 onward.

My growth forecast is below board meeting due to chance consumers may hold off on spending, Capex may be postponed.

Japan’s economy has yet to move on course for stable growth path.

Structural changes in Japan’s economy required for inflation to stably it 2%, which will take significant amount of time.

Smaller firms profitability, pass-through of rising costs, progress made in And wage hikes, household spending are among key factors I will look at.

Adjustment to easing monetary policy will proceed gradually, as the economy is expected to head toward a growth path

Nakamura comments are more dovish. The USDJPY is bouncing higher after trading as low as 150.175. The current price is trading at 150.51. The high price today reached 150.767.

The upside target area comes against a swing area between 151.198 and 151.27.

This article was written by Greg Michalowski at www.forexlive.com.