BoJ’s Ueda: More time needed to meet BoJ’s 2% inflation target
|Bank of Japan (BOJ) Governor Kazuo Ueda is speaking at the post-June policy meeting conference on Friday, noting that more time will be needed to meet the central bank’s 2% inflation target.”
Additional quotes
Effects, side-effects of unconventional monetary policy in past 25 years will be subject to our review of past policies.
Prices will be on uptrend but uncertainty high including outcome of annual wage negotiations.
Review of past policies will also address how globalisation, depopulation since 1990s affected businesses, households, monetary policy.
Will update progress of review of past policies on boj website starting next month.
There are signs of changes in corporate price-setting mechanism.
Pace of decline in prices has somewhat been slow.
We are weighing benefits and side-effects of yield curve control policy.
Will carefully explain our view on economy, financial markets and prices in communicating with markets.
No comment on forex rates.
There are both positive and negative impacts from weak Yen.
Important for currencies to move stably reflecting economic fundamentals.
Having 2% inflation target helps understanding of policy.
There is a gap between trend inflation and underlying inflation.
We need to look at not just median price projection but also overall picture when guiding policy.
Negative impact from the US rate hikes could come out later on including possibility of economic downturn.
If the US economy turns down, it would hurt exports, financial markets.
Positive signs emerging from companies' price, wage-setting behaviour.
Market reaction
In reaction to the above comments, USD/JPY is resuming its rally, currently testing 141.00, up 0.45% on the day.
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