BOJ Nagakawa: If the perspective is performed, the BOJ will continue to increase the interest rate

The member of the Bank of the Bank of Japan (BOJ), Junko Nagakawa, said Thursday that “if the perspective of economic activity and prices are carried out, the BOJ will continue to increase interest rates and adjust the degree of monetary accommodation.”

Additional quotes

• The US tariff policy., Economic and market developments abroad are some of the risks for Japan’s economic perspective.
• The uncertainty about US tariffs could affect the feeling of homes and companies, as well as the economy and prices of Japan.
• Excessive market volatility can exert down pressure on Japan’s economy.
• Companies are still in the process of moving the costs of raw materials.
• Considering the current levels of real interest rates, the future conduct of monetary policy will depend on developments in economic activity and prices, as well as financial conditions.
• There is a risk that salary pressure is even strengthened, translating into sales prices.
• The worsening of the feeling of the consumer could interrupt the cycle of increasing income and expenses.

Market reaction

At the time of publication, the USD/JPY is below the maximums, quoting 0.60% higher in the day at 142.75.