BoJ’s Himino: Will consider adjusting degree of monetary conditions if outlook is realized


Bank of Japan (BoJ) Deputy Governor Ryozo Himino is delivering a speech on Japan's markets at a Bloomberg event on Thursday.

Key quotes

We are witnessing record high corporate profits and record high wage increases in Japan.

If outlook for economic activity and prices presented in July report is achieved, BoJ will accordingly raise interest rates.

The policy board is going to look at totality of the data as it makes decisions meeting by meeting.

We have many real interest rates and they vary significantly but all of them negative.

Later in the year, we will have more data on pass through of wage hike on prices, and next year's wage negotiations.

We will also know more about pass-through of Yen-Dollar rate on inflation via import prices.

BoJ will consider adjusting degree of monetary conditions if board has greater confidence its outlook is realized.

What data to focus shifts as data comes in, today US employment and consumption, and Chinese consumption may deserve more attention than before.

We monitor data to detect developments that are not already covered in our risk scenarios, looking at data outside the current priority list is equally important.

In meeting with PM Ishiba, Governor Ueda also said BoJ has enough time to carefully monitor financial markets, economy at home and abroad.

There is no silver bullet in better communication, each approach comes with pros and cons.

There is no clear consensus yet among board members about future approaches on better communication.

There is a strong will among us to learn from what happened in august and continue to try better on communication.

Market reaction

USD/JPY is testing 149.00 once again following these comments, down 0.16% on the day.

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