BOJ's Naoki Tamura says its appropriate to keep easy monetary policy at present

<p>Bank of Japan monetary policy board member Naoki Tamura </p><ul><li>
Personally feel sustained, stable achievement of 2% inflation target
is clearly in sight</li><li>Appropriate to keep
easy policy now given uncertainty over prospects for hitting price
goal</li><li>We are in a phase
where we need to humbly look at wage, price developments</li><li>Hoping we will have
further clarity around January-March next year on prospects for
hitting price goal</li><li>Don't expect 10-year
yield to rise to 1.0%, new cap is set as protective measure</li><li>Uncertainty over
Japan's economic, price outlook very high</li><li>BOJ's step in July
aimed at making operation of YCC more flexible</li><li>Corporate
price-setting behaviour has changed from period of deflation</li><li>Positive cycle
between wages, inflation being seen as wage rises improve consumer
sentiment</li><li>Japan's exports,
output moving sideways, capex rising moderately</li><li>Japan's economy
likely to keep recovering driven by domestic demand</li></ul><ul><li>Japan's inflation likely to slow for time being, then accelerate
moderately again</li><li>Can't rule out
chance inflation may overshoot expectations</li><li>I believe we can
expect high wage growth in next year's spring wage negotiations</li></ul><p>Bolding above is mine, this is different from the BOJ … All we have heard from the BOJ so far is that they expect inflation to fall back from around September/October. Tamaura saying here that after a dip inflation is expected to rise again. This is different and may be a (very) early sign the BOJ is positioning to dial back some of its ultra easy policy. . </p><p>More:</p><ul><li>
BOJ will take steps to curb excessive rise in interest rates via
steps such as increase in bond buying, if we see speculative moves
and sharp rate volatility that deviate from fundamentals
</li></ul>

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