BOJ’s Nakagawa speaks on one-sided yen falls

Bank of Japan monetary policy board member Nakagawa:

• One-sided
  yen falls subsided somewhat but rising import prices could affect
  consumer inflation with a lag
• Prolonged
  inflation overseas could put upward pressure on Japan’s import prices
• Must
  be mindful of impact of overseas, domestic market moves on Japan’s
  inflation
• Japan’s
  exports, output likely to resume uptrend as overseas economies
  sustain moderate growth
• Wage
  growth likely to accelerate as a trend reflecting rising prices
• Consumption
  likely to increase moderately reflecting higher wages, albeit being
  affected by rising prices for time being
• Expect inflation to gradually accelerate as a trend
• Achievement of wage-inflation cycle is in sight

• Must be mindful of upside risk to inflation, downside risks
  surrounding overseas economies
  there is a risk delay in
  recovering of consumer sentiment could prevent rising income from
  translating into higher spending
• Even
  after July rate hike, real interest rates remain deeply negative,
  accommodative monetary conditions maintained
• If
  long-term rates spike, BOJ could review its taper plan at its policy
  meeting as needed
• BOJ
  likely to adjust degree of monetary easing if economy, prices move in
  line with its projection
• There
  is no big change to Japan’s economic fundamentals including record
  profits at Japan firms
• When
  considering adjusting degree of monetary easing further, we will
  scrutinise market developments after July rate hike and how that
  affects economy, prices

Yen gaining:

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