The Bank of Japan is shifting to a more discretionary approach in setting policy, with less emphasis on inflation, sources said, as the central bank maps its monetary path following the historic decision to end a radical stimulus programme in March.
TOKYO, April 15 -
"Various data must be scrutinised, not just the inflation outlook," one of the sources said, pointing to the importance of other indicators such as consumption, wages and the broader economy. The remarks suggest the BOJ could hike rates regardless of its inflation forecasts, as long as it becomes more convinced than before that Japan will sustainably hit its price goal.
Consumption has recently been weak on rising living costs and slumping auto sales, raising the risk of an economic contraction in the first quarter.
BOJ CEN ECI ECO GDP INT MCE NEWS1 PLCY EASIA ASXPAC ASIA JP ECON
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