BoJ Board member Junko Nakagawa struck a cautiously optimistic tone today about the Japanese economy, citing “positive developments” and “signs of change in corporate price and wage-setting behavior.”
However, she was quick to note that the country has not yet achieved its price target “in a stable, sustainable fashion.”
Nakagawa noted that there are chances inflation could accelerate beyond initial expectations. However, she also warned of the potential for inflation to decelerate once the pass-through effects of higher costs begin to moderate.
The policymaker underscored the need for BoJ to maintain its ultra-loose monetary policy for the time being, citing the prevailing economic uncertainty.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/517614-boj-nakagawa-sees-positive-developments-but-loose-monetary-policy-still-needed/&media=https://www.actionforex.com/wp-content/uploads/2018/03/f-japan5.jpg&description=BoJ Board member Junko Nakagawa struck a cautiously optimistic tone today about the Japanese economy, citing "positive developments" and "signs of change in corporate price and wage-setting behavior."){kind=link}