Japan’s Kanda Says Can Intervene 24 Hours a Day If Needed

Opinions on Economic and Financial Developments Economic Developments • Japan's economy has recovered moderately, although some weakness has been seen in part. It is likely to keep growing at a pace above its potential growth rate, as a virtuous cycle from income to spending gradually intensifies. • Although some of the latest data show relatively weak developments and some information has raised concerns, the following main scenario remains unchanged: a virtuous economic cycle is expected to be supported from the income side by significantly high levels of corporate profits and by the highest level of wage growth in around three decades, achieved in the annual spring labor-management wage negotiations. In addition, price indicators have been on track. • Private consumption lacks momentum, as high prices have affected daily shopping and consumer sentiment. Close attention needs to be paid to the extent to which wage hikes and the government's measures push up private consumption.  Regarding regular employees of small and medium-sized firms and pensioners, increases in their wages and pensions may not catch up with the rise in prices for the time being. Meanwhile, increases in wages for non-regular employees and for regular employees of large firms can be expected to be equal to or greater than the rise in prices. Attention is warranted on the effects of these wage developments on private consumption. post: BOJ JUNE MEETING SUMMARY OF OPINIONS: ONE MEMBER SAID BOJ EXPECTED TO RAISE INTEREST RATE IF UNDERLYING INFLATION RISES AS PROJECTED post: BOJ JUNE SUMMARY: ONE MEMBER SAID WEAK YEN COULD LEAD TO OVERSHOOT IN INFLATION, WHICH MEANS APPROPRIATE LEVEL OF POLICY RATE WOULD BE PUSHED UP post: BOJ JUNE SUMMARY: ONE MEMBER SAID MUST DIMINISH BOJ'S PRESENCE IN BOND MARKET BY TRIMMING ITS BOND BUYING

post: Japan Top Currency Diplomat Kanda: Will Take Appropriate Steps If There Is Excessive FX Move - Excessive FX Moves Have Negative Economic Impact post: JAPAN'S TOP CURRENCY DIPLOMAT KANDA: US FX REPORT HAS NO IMPACT ON JAPAN'S FOREX POLICY. post: JAPAN'S TOP CURRENCY DIPLOMAT KANDA STANDS READY TO INTERVENE 24 HOURS A DAY IF NECESSARY post: JAPAN'S TOP CURRENCY DIPLOMAT KANDA SEES NO CONSIDERATION OF SPECIFIC LEVELS FOR INTERVENTION.