They must patiently maintain loose monetary conditions

Bank of Japan (BoJ) board member Asahi Noguchi said on Thursday that the central bank “must patiently maintain loose monetary conditions”.

Additional quotes

It will take a long time for the public to shift to a mindset where inflation can sustainably reach 2%.

I personally believe that the upward trend in consumption will become clearer.

Cost pressure from rising wages gradually reflected in service price increases.

The BoJ is likely to adjust the degree of monetary support as it cautiously examines whether inflation steadily reaches 2%, accompanied by wage gains.

The BoJ’s policy adjustment aimed to smooth the way towards achieving potential growth that helps inflation sustainably reach 2%.

The BoJ’s tapering of bond purchases aims to restore market flexibility without causing turbulence.

The BoJ can spend time, move cautiously, in reducing the balance sheet.

Market reaction

At the time of writing, USD/JPY is trading just below 147.00, adding 0.30% on the day. These comments had little or no impact on the Japanese yen.