BoJ Summary of Opinions: trade concerns need to be watched, wages still flat

The Bank of Japan (BoJ) is out with their latest Summary of Opinions from the latest rounds from within the central bank, and little of note has changed or altered in the BoJ’s stance as they continue to lean heavily into their easing policies, taking note that trade concerns could bode poorly for the Japanese economy if growth begins to take a turn.

Key highlights

Japan’s economy continues to expand moderately, with the Consumer Price Index (CPI) expected to continue rising towards the BoJ’s 2% target.

2018’s first quarter contraction in the GDP for the first time in nine quarters is expected to be based on temporary factors and should correct itself for the second quarter.

Protectionist policies from the US need to be watched carefully, while the EU’s political situation and volatility from emerging markets also pose risks.

Inflation remains sluggish despite the unemployment rate sitting at 2.5%.

A lack of rising wages could pose a burden on the overall economy.

The BoJ expects to continue with its monetary policy stance for the unforeseeable future.