Consideration will be given to adjusting the degree of monetary conditions if the outlook is realized

Bank of Japan (BoJ) Vice Governor Ryozo Himino delivers a speech on Japanese markets at a Bloomberg event on Thursday.

Key quotes

We are witnessing record corporate profits and record wage increases in Japan.

If the outlook for economic activity and prices presented in the July report is realized, the BoJ will raise interest rates accordingly.

The Policy Board will review all data as it makes decisions on a meeting-by-meeting basis.

We have many real interest rates and they vary significantly, but they are all negative.

Later in the year, we will have more data on the pass-through of wage growth to prices and next year’s wage negotiations.

We will also know more about the pass-through of the yen-dollar rate on inflation through import prices.

The BoJ will consider adjusting the degree of monetary conditions if the board has more confidence that its outlook is being realized.

What data to focus on changes as data comes in, today US employment and consumption and Chinese consumption may deserve more attention than before.

We monitor data to detect developments not already covered in our risk scenarios, analyzing data outside the current priority list is equally important.

In the meeting with Prime Minister Ishiba, Governor Ueda also said that the BoJ has enough time to carefully monitor financial markets, the economy at home and abroad.

There is no silver bullet in better communication, each approach comes with pros and cons.

There is still no clear consensus among board members on future approaches to better communication.

There is a strong will among us to learn from what happened in August and to continue to try to communicate better.

Market reaction

USD/JPY is retesting 149.00 following these comments, down 0.16% on the day.