OECD Sec Gen expects wage pressures will keep inflation around Bank of Japan target level

OECD Sec Gen expects wage pressures will keep inflation around Bank of Japan target level

Earlier from the Organisation for Economic Co operation and Development:OECD urges the Bank of Japan to gradually raise short term interest ratesFollow up comments from OECD Secretary General Cormann: Japan's monetary policy can gradually and modestly begin tighteningInflation is expected to slow over course of this year but wage pressure will keep it around BOJ's targetIn context of several decades of very low inflation or deflation, I understand why BOJ is very keen to ensure it has all of data necessary to judge level of tightening of monetary policyWe are perhaps more optimistic that inflation will more durably settle around BOJ's targetThere is scope for BOJ to consequently consider level of tightening in monetary policy Mathias Cormann was once Australia's Finance Minister. I'm sure Bank of Japan Governor Ueda will bear that in mind when considering this advice. This article was written by Eamonn Sheridan at www.forexlive.com.