BOJ’s Noguchi says must patiently maintain loose monetary conditions

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.