BoJ’s Takata: If economy, prices move in line with our forecast, will adjust policy rate in several stages


Bank of Japan (BoJ) Board Member Hajime Takata is back on the wires early Europe on Thursday, noting that “if the economy, prices move in line with our forecast, we will adjust policy rate in several stages.”

Additional quotes

Don't have specific image in mind when I say we need to spend "sufficient time" to scrutinize economy, price developments.

Current market moves are second round of the volatility we saw in early August, which reflects concern over  the US economic outlook.

Our basic stance is to adjust degree of monetary support if economy, prices on track but that is not without some qualifications.

If markets are volatile, we must gauge the moves' impact on economy, prices in setting policy.

Based on our hearings, we expect there to be more price hikes in October though that was when the Yen was weakening.

We have seen some change in FX, market moves so must need to take fresh look at impact on economy, prices.

We won't directly respond to FX moves but we are aware they could affect economy, prices and risks.

Don't have preset idea on pace of rate hikes, or on whether we will hike rates several times.

We have no choice but to scrutinize at each policy meeting how market moves affect corporate balance sheets, earnings and risks to economy.

Market reaction

At the time of writing, USD/JPY is holding its pullback to near 143.35, losing 0.26% on the day. The BoJ official leaves the door ajar for further interest-rate hikes, putting a fresh bid under the Japanese Yen.

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