BOJ’s Nakamura: Must patiently maintain current easy policy until wages begin to rise sustainably

Bank of Japan (BOJ) board member Toyoaki Nakamura is back on the wires now, via Reuters, urging a patient stance on the current easy policy until wages begin to rise sustainably.

Additional comments

Unlike US. and Europe, consumer inflation and wage growth remain low.

Japan has not seen conditions fall in place yet to tweak its easy policy.

Expect Japan firms to gradually pass on rising costs to households.

If wages begin to rise sustainably, that would put Japan closer to the situation in US, Europe.

Raising rates now would deprive firms of funds needed to push up wages.

Japan likely won't see pent-up demand emerge in current quarter, though it will materialize once pandemic subsides.

Hope pent-up demand emerges in Japan around the holiday-studded golden week in May.

Dollar/yen moves have been quite stable in the past two years.