BoJ’s Masu: Don’t have any strong disagreement that underlying inflation still short of 2%

• Want to scrutinise how prices move after recent spike in price of rice moderates.
• Want to hear from BoJ staff, see data for policy.
• We need to monitor government’s trade talks with US.
• Automobiles are mainstay of Japan’s export to US so should not have any pre-set idea on impact on Japan’s economy until trade talks with US are resolved.

These comments put him in the neutral/dovish camp. There’s the usual focus on trade talks which is what has been keeping the BoJ on the sidelines in terms of monetary policy.

This article was written by Giuseppe Dellamotta at www.forexlive.com.