Bank of Japan Nakagawa says ready to raise rates if inflation on track – recap

Nakagawa is a member of the Bank of Japan monetary policy board.

Nakagawa spoke earlier, clearly indicating the rate hikes are not done:

• BOJ’s Nakagawa speaks on one-sided yen falls
• USD/JPY has dropped under 142.00 on BOJ Nakagawa comments

Main points, in summary:

• Bank of Japan will
  continue to raise interest rates if inflation moves in line with
  its forecast
• last month’s market rout has not derailed its
  plan to hike steadily
• the BOJ must take into account the impact
  that such market moves could have on the outlook for the economy
  and prices when considering whether to hike rates further
• real interest rates are currently very low, we will
  adjust the degree of monetary support, from the standpoint of
  sustainably and stably achieving our 2% inflation target, if our
  economic and price forecasts are met

USD/JPY dropped to near 141.50 and is currently around 141.70.

This article was written by Eamonn Sheridan at www.forexlive.com.