BOJ's Nakagawa says its appropriate to maintain easy monetary policy for the time being

<p>Bank of Japan monetary policy board member Nakagawa:</p><ul><li>
Appropriate to maintain easy monetary policy for time being</li><li>Signs of change seen
in Japan's corporate price, wage-setting behaviour</li><li>Still not at stage
where we can say japan has stably, sustainably achieved BOJ’s price
target</li><li>Monetary easing
involves various side-effects</li><li>BOJ will conduct
flexible market operation when 10-year JGB yield moves in range of
0.5-1.0% range with eye on interest rate levels and speed of moves</li><li>BOJ’s July
decision has heightened sustainability of its monetary easing
framework</li><li>Japan's capex,
consumption increasing moderately</li><li>Japan's economy
likely to continue recovering moderately</li><li>Our baseline
scenario is for consumer inflation to gradually re-accelerate after a
period of slowdown</li></ul><ul><li>
There is chance inflation could accelerate more than expected, though
there is also chance pass-through of costs could moderate</li><li>Job market
tightening but outlook for wages also depends on corporate earnings</li><li>Price rises for
goods broadening, service prices also rising mainly for accommodation
fees</li><li>Must be vigilant to
risk of further slowdown in global growth</li></ul><p>Nothing here to indicate any desire to back away from loose policy. </p>

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