BoJ’s Tamura: Inflation likely to slow pace of increase towards latter half of next fiscal year

For now, we must carefully, humbly look at how markets will stablize, to what extent market functions will improve.

Widening of yield band in Dec was not aimed at tightening monetary policy.

Financial transmission function being smoothly exerted for now.

Personally feel that prolonged, massive easing may have curbed effect of market mechanism.

At some point in the future, BoJ must conduct assessment of monetary policy framework, feasibility of its policy by looking at balance of benefits, costs.

But for now, it is appropriate to maintain easy monetary policy.

Japan's economy likely to recovery but uncertainty regarding outlook is extremely high.

What's unique about recent price rises is that it is driven by change in corporate price-setting behaviour.

There is a risk inflation could overshoot expectations.

Japan has yet to see conditions where our 2% inflation is stably, sustainably achieved.

What's important is whether positive economic cycle is achieved, in which price rises are accompanied by higher corporate profits, wage increases.

I see fairly good chance strong wage hikes will be achieved in spring wage negotiations.