Former Bank of Japan (BOJ) Chief Economist Seisaku Kameda said in an MNI interview on Thursday, he sees Japanese inflation rising to around 3% towards the end of this year but that is unlikely to prod the BOJ to alter its ultra-easy monetary policy stance.
“BOJ is unlikely to respond directly to cost-push inflation and the yen's short-term fall, awaiting the appointment of a new BOJ governor and deputies in Spring 2023.“
“BOJ could examine or review monetary policy, including the impact of cost-push inflation developments, he did not elaborate.”
"Upward pressure from high food and durable goods on consumer prices will continue during the current fiscal year (to March 2023), paving the way for core CPI to rise to around 3%.”
“But higher core CPI would not lead to a policy adjustment by the BOJ as it would not be consistent with the central bank's 2% goal in a stable and sustainable manner.”
Also read: BOJ’s Kuroda would hold policy even if inflation hits 3% – Bloomberg survey
USD/JPY is off the lows but remains below 137.00 heading into the European morning. The spot was last seen trading at 136.66, losing 0.32% on the day.