• Agreed that there was no immediate need to change 2013 joint statement with government
• Discussed need to guide policy flexibly given economic uncertainty
• Monetary stimulus has helped pull Japan out of deflation

It’s his first official day on the job and for now, there is no need to ruffle any feathers. The time will come when the government will seek the BOJ to pull away from its ultra easy monetary policy stance, but it is not this day. The positive wage developments from the shunto negotiations is a first step. Now, we will have to see how the inflation outlook and financial conditions play out in the months ahead before any hints of a potential policy pivot may come about.

This article was written by Justin Low at www.forexlive.com.