If the economy, prices move in line with our forecast, we will adjust the policy rate in several stages

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

Additional quotes

Don’t think of a specific picture when I say that we need to spend “enough time” to analyze the economy, price developments.

The current market moves represent the second round of volatility we saw in early August reflecting concern about the US economic outlook.

Our basic position is to adjust the degree of monetary support if the economy, prices are on the right track, but this is not without some qualifications.

If markets are volatile, we need to assess the impact of movements on the economy, prices in setting policy.

Based on our hearings, we expect more price hikes in October, although the yen was weakening then.

We’ve seen some changes in FX, market movements, so we have to look again at the impact on the economy, prices.

We will not respond directly to currency movements, but we are aware that they could affect the economy, prices and risks.

You don’t have a preconceived idea of ​​the pace of rate hikes or whether we will raise rates multiple times.

We have no choice but to examine at every policy meeting how market movements affect corporate balance sheets, earnings and risks to the economy.

Market reaction

At the time of writing, USD/JPY is holding its retreat near 143.35, losing 0.26% on the day. BoJ official leaves door ajar for further interest rate hikes, putting new bid below Japanese yen.