OECD Sec Gen expects wage pressures will keep inflation around Bank of Japan target level

<p>Earlier from the Organisation for Economic Co-operation and Development:</p><ul><li><a href="https://www.forexlive.com/centralbank/oecd-urges-the-bank-of-japan-to-gradually-raise-short-term-interest-rates-20240111/" target="_blank" rel="follow" data-article-link="true">OECD urges the Bank of Japan to gradually raise short-term interest rates</a></li></ul><p>Follow-up comments from OECD Secretary-General Cormann:</p><ul><li>
Japan's monetary policy can gradually and modestly begin tightening</li><li>Inflation is
expected to slow over course of this year but wage pressure will keep
it around BOJ's target</li><li>In context of
several decades of very low inflation or deflation, I understand why
BOJ is very keen to ensure it has all of data necessary to judge
level of tightening of monetary policy</li><li>We are perhaps more
optimistic that inflation will more durably settle around BOJ's
target</li><li>There is scope for
BOJ to consequently consider level of tightening in monetary policy</li></ul><p>

Mathias Cormann was once Australia's Finance Minister. I'm sure Bank of Japan Governor Ueda will bear that in mind when considering this advice.</p>

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