October 03, 2024 at 02:33AM
Bank of Japan monetary policy board member Noguchi
BOJ board member Noguchi said they must patiently maintain loose monetary conditions.
BOJ’s Noguchi stated it will take considerable time for the public to shift to a mindset where inflation can sustainably reach 2%.
Noguchi personally believes that the uptrend in consumption is likely to become clearer.
Cost pressure from wage hikes is gradually being reflected in service price rises, according to Noguchi.
BOJ will likely gradually adjust the degree of monetary support while cautiously examining whether inflation stably reaches 2%, accompanied by wage gains.
Noguchi mentioned that BOJ’s policy adjustment is aimed at smoothing the path toward achieving potential growth that helps inflation durably reach 2%.
BOJ’s tapering of bond buying is aimed at recovering flexibility in markets without causing turbulence.
BOJ can take its time and move cautiously in reducing its balance sheet, Noguchi added.
This article was written by Eamonn Sheridan at www.forexlive.com.