BoJ board member Toyoaki Nakamura expressed a cautious stance on monetary policy adjustments, emphasizing the need for careful calibration aligned with Japan’s economic recovery.
“We are at a state where it’s important to adjust the degree of monetary easing carefully in accordance with the economic recovery by assessing a broad array of data,” Nakamura said.
As a known dove on the BoJ board, Nakamura raised doubts about the durability of current wage hikes, saying he is “not confident” about their sustainability. He also flagged concerns about inflation, noting the possibility that the annual rate “may not reach 2% from fiscal 2025 onwards.”
In a related development, a Jiji Press report indicated growing hesitation within BoJ regarding a premature rate increase. Market expectations for a December rate hike have fallen sharply, with traders now pricing in only a 36% chance, down from 66% at the end of last week.
