Bank of Japan board member Seiji Adachi comments are in line with comments from other BOJ officials. Other central banks may be tightening but not the BOJ:
- Japan’s service spending showing signs of improvement
- Japan’s exports rising as a trend
- Japan’s economy picking up as a trend
- There is rising risk that drop in China’s output, caused in part by its zero-covid policy, may lead to serious global supply constraints
- Such risks from China may be temporary if covid infections subside, china’s output recovers
- Must be mindful of risk US Monetary tightening could lead to major slowdown in its economy, cause global asset price adjustments
- Japan is still half-way to achieving BOJ’s price target
- Says he sees a bigger chance of inflationary pressures in Japan increasing
On the currency:
- we must not forget that strong yen was among the factors that led to Japan’s prolonged period of defaltion and economic stagnation
(this is a roundabout way of showing support for the lower yen, something that the BOJ is not particularly concerned about, although others in Japan have expressed worries on weaker currency)
jpy