BOJ’s Tamura says expects a gradual path for interest rate hikes

Bank of Japan board member Naoki Tamura delivers a speech.

• Japan’s neutral rate is likely to be around 1% at the minimum
• the path towards ending easy policy is still very long
• Will carefully examine the pros and cons of exiting easy policy

• Must push up short-term rates at least to around 1% by latter half
  of our long-term forecast period through fiscal 2026, to stably
  achieve 2% inflation target
• must raise
  short-term rates in several stages while scrutinising how economy,
  inflation respond to such steps
• will keep close eye
  out on financial market moves and their impact on economy,
  prices
  must raise rates at appropriate timing and in several
  stages
• pace at which
  markets expect BOJ to hike rates is very slow, hiking at such pace
  could further heighten upward inflation risk

USD/JPY is falling on these comments from Tamura

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