BOJ official says yet to see positive wage-inflation cycle – easy policy to remain

<p>Seiji Adachi is a Member of the Policy Board of the Bank of Japan.</p><p>His comments are mixed but he is not expressing any rush to exit easy policy. </p><ul><li>
Japan yet to see positive wage-inflation cycle become embedded enough</li><li>Appropriate to
patiently maintain easy policy</li><li>If needed BOJ will
take additional easing steps</li><li>Steps BOJ took in
October to make YCC flexible not aimed at laying the groundwork for
policy normalisation</li></ul><ul><li>
Japan's inflation expectations heightening moderately</li><li>See risk to Japan's
inflation outlook skewed to upside</li></ul><ul><li>
Companies starting to shed deflationary price-setting practices</li><li>Hard to predict now
whether wage hikes will continue next fiscal year</li><li>Given high
uncertainty over global economic outlook, there is risk japan's
inflation, wages face downward pressure</li><li>If positive
wage-inflation cycle strengthens, that could further push up prices</li></ul>

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