The Bank of Japan (BOJ) is facing increasing pressure to exit its ultra-low rate policy as Japan's price trend gauge hits a record high. BOJ policymaker Adachi expressed caution, stating that a positive wage-inflation cycle is crucial before considering an exit from negative rates. Adachi also emphasized the need to wait for the outcome of next year's wage talks and warned of the negative impact on the economy if real interest rates turn positive. Another BOJ member stressed the importance of maintaining current monetary easing and highlighted the need for more time before adjusting policy. Meanwhile, Japan's industrial production rose more than expected in October, indicating economic resilience. BOJ's Nakamura echoed the sentiment, emphasizing the necessity of patience and the continued need for yield curve control (YCC) and negative rates framework.
π΄ BOJ'S NAKAMURA: IT WILL STILL TAKE TIME TO SCRAP YCC AND NEGATIVE RATES.
π΄ BOJ'S NAKAMURA: WE NEED TO LOOK AT MORE DATA.
π΄ BOJ'S NAKAMURA: YCC AND THE NEGATIVE RATES FRAMEWORK ARE STILL NEEDED.
π΄ BOJ'S NAKAMURA: WE SEE A RARE MAJOR CHANCE FOR A WAGE-PRICE CYCLE.
π΄ BOJ'S NAKAMURA: I EXPECT JAPAN'S ECONOMY TO RECOVER MODERATELY ACCOMPANIED BY WAGE INCREASES.
π΄ BOJ'S NAKAMURA: MORE TIME IS NEEDED BEFORE ADJUSTING POLICY.
π΄ BOJ'S NAKAMURA: WE CAN'T BE CERTAIN ABOUT ACHIEVING THE PRICE TARGET.
π΄ BOJ'S NAKAMURA: WE MUST PATIENTLY MAINTAIN CURRENT MONETARY EASING FOR THE TIME BEING.
BOJ policymaker says need more time before phasing out stimulus https://t.co/USHIRItUCT https://t.co/n5Hs9BNBNE
Japanβs industrial production rose more than expected in October, offering a fresh sign of economic resilience as the weak yen bolstered exporters and spurred inbound tourism https://t.co/DZ2QAM0s0p
Japanβs industrial production rose more than expected in October, offering a fresh sign of economic resilience as the weak yen bolstered exporters and spurred inbound tourism https://t.co/0W3YSAvEjy
BOJ policymaker says premature to debate exit from negative rate policy - Reuters https://t.co/EdX2wbBhoy
A BOJ member stressed the need to stick with monetary easing, in what appeared to be an attempt to cool market speculation over an early policy normalization move https://t.co/JUeIuDOwYT
A BOJ member stressed the need to stick with monetary easing, in what appeared to be an attempt to cool market speculation over an early policy normalization move https://t.co/tAKWfsIeNz
A BOJ member stressed the need to stick with monetary easing, in what appeared to be an attempt to cool market speculation over an early policy normalization move https://t.co/9XuPNoNvqe
π΄ BOJ'S ADACHI: ENDING THE NEGATIVE RATE IS DIFFERENT IN NATURE FROM MAKING YCC FLEXIBLE AS IT'S CLOSER TO MORE ORTHODOX POLICY THAT AFFECTS SHORT-TERM INTEREST RATES.
π΄ BOJ'S ADACHI: INFLATION-ADJUSTED WAGES DON'T NECESSARILY NEED TO TURN POSITIVE TO DEBATE AN EXIT FROM NEGATIVE RATES.
π΄ BOJ'S ADACHI: THE POSITIVE WAGE-INFLATION CYCLE MAY KICK OFF BUT THIS HASN'T HAPPENED YET, IF THE CHANCE OF IT HAPPENING INCREASES WE CAN START DISCUSSING AN EXIT STRATEGY.
π΄ BOJ'S ADACHI: I WILL PROBABLY NEED TO WAIT UNTIL THE START OF THE NEXT FISCAL YEAR IN DETERMINING NEXT YEAR'S WAGE TALKS OUTCOME, WHICH WILL BE CRUCIAL IN MAKING A BIG POLICY DECISION.
π΄ BOJ'S ADACHI: I DON'T THINK WE ARE AT THE STAGE TO DISCUSS WHEN WE CAN END NEGATIVE RATES.
π΄ BOJ'S ADACHI: I PERSONALLY THINK IT'S DIFFICULT TO END THE NEGATIVE RATE UNTIL A POSITIVE WAGE-INFLATION CYCLE KICKS OFF.
π΄ BOJ'S ADACHI: THE RISE IN REAL INTEREST RATES TO POSITIVE TERRITORY WOULD HAVE A NEGATIVE IMPACT ON THE ECONOMY.
BOJ policymaker says premature to debate exit from ultra-low rates https://t.co/uu1XL2RydK https://t.co/2RiANTBnJR
Japan's price trend gauge hits record, heightens case for BOJ exit - Reuters https://t.co/mVltspBzdA