BoJ board member Hajime Takata indicated in a speech today that the central bank may need to “adjust the degree of monetary easing further” if inflation trends align with forecasts and companies continue increasing spending, wages, and passing on costs through price hikes.
Takata also pointed out the challenges posed by the differing monetary policies of the US and European central banks, which are now moving toward rate cuts. He cautioned that the delayed effects of their aggressive tightening could still impact Japan’s economy. “We must carefully monitor domestic and overseas developments,” Takata added.
Market turbulence, particularly in stocks and currencies, has been significant since early August, and Takata acknowledged that “the fallout continues.” He stressed the need for the BoJ to scrutinize market developments and their impact on Japan’s economy.
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