Ella 
On Wednesday, Bank of Japan Deputy Governor Himimo Yoshizo said, “The Bank of Japan will patiently maintain an easing policy until the price target is stably achieved.
Japan’s financial system may be resilient enough to withstand the stress of a transition to higher interest rates.
Appropriate decisions on the timing and procedures for exit must be taken by carefully studying wage and inflation developments.
If we do not make mistakes in the timing and procedures of exit, the impact of the positive wage-inflation cycle will likely benefit a wide range of households and companies.
The Bank of Japan must achieve a slowdown in inflation, but not too quickly.
Price and wage behavior in Japan is changing steadily.
The shift in corporate wage and price-setting behavior has made solid progress.
Price increases are starting to affect wages.
The transmission from wages to inflation has also recovered to some extent.
If a virtuous cycle between wages and prices does not form, Japan is likely to return to its past deflationary state.
When Japan returns to a positive interest rate economy, the overall balance of payments situation of households will improve.
