Ella 
Bank of Japan board member Hajime Takata said on Wednesday: “Since the degree of uncertainty about the economic outlook is very high, I think the Bank of Japan must patiently maintain accommodative policies. At the same time, the Bank of Japan must respond flexibly to the uncertain outlook and focus on the economy and Price Outlook.“
The Japanese economy recovered moderately.
Japan has seen early signs of achieving 2% inflation.
Japan is likely to shift public perception that prices and wages will not rise significantly.
There are signs of change in the wage and price-setting behavior of Japanese companies.
There are signs of a change in Japan’s inflation trend as rising wages push up inflation expectations.
Inflation has breached the Bank of Japan’s 2% target but is still some way off from achieving it stably and sustainably.
If overseas economies slow down significantly, it could drag down the Japanese economy.
The output gap has turned positive and may continue to gradually expand.
Real interest rates are likely to continue to fall, intensifying monetary easing.
The Bank of Japan will pay close attention to market dynamics to achieve bond market stability, while paying attention to the pros and cons of the bond yield curve control policy.
Market Reaction
USD/JPY was unaffected by the above remarks, holding steady at 147.70 at press time.
