BOJ/Nakamura: We Must Carefully Adjust the Degree of Monetary Expansion

Foreks - BOJ policy board member Toyoaki Nakamura spoke cautiously about the outlook for inflation and wages despite increasing market expectations for an interest rate hike. In a speech to business leaders in Hiroshima, he stated, "While monitoring many data points, we are at a crucial stage where we need to carefully adjust the degree of monetary easing according to the state of the economic recovery." Nakamura expressed that he is still uncertain about the sustainability of wage increases and that inflation might miss the bank's 2% target in the upcoming fiscal year starting in April. Nakamura is viewed as a dovish member of the board since he opposed interest rate hikes in both March and July.