BoJ’s Ueda: Stable, sustainable achievement of 2% inflation not yet in sight
|Bank of Japan (BOJ) Governor Kazuo Ueda is holding a news conference following his meeting with business leaders in Osaka, western Japan, on Monday.
Key quotes
Stable, sustainable achievement of 2% inflation not yet in sight.
Japan's economy is at a critical stage on whether it can achieve positive wage-inflation cycle.
Must continue to be vigilant to chance past sharp US rate hikes could affect economy, financial system with a lag.
Chinese economy's slow pace of pick-up is also worrying.
It is true inflation is exceeding 2% for prolonged period, but that alone cannot lead us to conclude japan close to stably, sustainably achieving our target.
Key to whether Japan is close to achieving our target is whether wage growth leads to moderate rise in inflation.
Japan firms are changing prices more frequently than in past, which is important sign suggesting wages and inflation could move in tandem.
BoJ recognizes that impact of rising raw material costs, weak yen on earnings vary for each sector, company size.
Policy prescription to deal with inflation would vary depending on factor behind price rises.
We have supported economy with easy monetary policy since cost-push inflation that we have seen so far hurts Japan firms, households.
Want to continue carefully weighing benefits, cost of our policy.
Important for FX to move stably reflecting fundamentals.
Hopes to work closely with govt, scrutinise impact of FX moves on economy, prices.
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