The statements of Bank of Japan monetary policy maker Hajime Takata were today:-
- The trend of moderate recovery is intact despite the slowdown in capital expenditures and consumption.
- Monetary policy must remain consistent with the real economy and the financial environment.
- They have not yet made their decision on the monetary policy decision.
- Wage increases are expanding more strongly than last year.
- Many companies are offering higher wage increases than in 2023.
- We need to keep some mitigation measures to some extent.
- The achievement of the 2% inflation target is on the horizon despite the uncertainty about the economic outlook.
- The Japanese economy is at an inflection point to change the rule that people believe that wages and prices are not rising.
- Exit measures should include the abandonment of the yield curve control framework, the termination of negative interest rates, and the commitment to exceed.
- We need to monitor the results of wage talks in the spring after mid-March.
His comments resonate with the Japanese yen rising by almost 1% against the dollar, as the yen is gaining strength as a result after these comments, and the Bank of Japan has highlighted the spring wage negotiations as a key input in ending the YCC. Is this the turning point to pricing the next steps of the Bank of Japan before the results of the spring wage negotiations, which will be in March-April
