Bank of Japan (BOJ) Deputy Governor Ryozo Himino said on Wednesday, the “BoJ will patiently maintain easy policy until sustained and stable achievement of price target is in sight.”
Additional comments
Japan's financial system is likely resilient enough to weather stress from transition to higher interest rates.
Must make appropriate decision on exit timing, procedure by scrutinising wage, inflation developments.
If we do not get the timing exit, procedures wrong, the impact of a positive wage-inflation cycle will likely benefit wide range of households, companies.
BoJ must achieve situation where inflation slows ahead, but not too much.
Japan is seeing steadily changes in price, wage behavior.
Solid progress is observed in the transformation of firms' wage- and price-setting behavior.
Price rises beginning to affect wages.
Pass-through from wages to inflation is also returning somewhat.
Without virtuous cycle between wages and prices, Japan will most likely revert to the deflationary state in the past.
When Japan returns to an economy with positive interest rate, that could improve households' balance as a whole.
Market reaction
USD/JPY is testing session highs of 147.30 on the above comments, currently trading at 147.25, up 0.07% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD keeps the bullish tone around 1.1260
EUR/USD now manages to regain upside impulse and revisits the 1.1260 zone on Tuesday. The resurgence of the selling pressure continues to hurt the US Dollar amid fresh concerns over the US economy and unabated uncertainty stemming from the US trade policy.
GBP/USD turns positive around 1.3370
GBP/USD picks up renewed pace on Tuesday, leaving behind earlier daily lows near 1.3330 and refocusing on the 1.3360-1.3370 band amid a mild bearish tone in the Greenback. Meanwhile, investors continue to assess the recent Moody’s downgrade of US rating ahead of key UK inflation data on Wednesday.
Gold accelerates its advance, retargets $3,300
Gold now climbs to multi-day highs beyond the $3,280 mark per troy ounce on Tuesday, following the resumption of the selling pressure on the Greenback and propped up by a cautious market mood.
Bitcoin fails to reach all-time high despite building institutional and state support
Bitcoin price stabilizes around $105,200 on Tuesday, just 4% shy of its all-time high at $109,588. JPMorgan CEO Jamie Dimon says the bank will let clients buy Bitcoin.The Texas House is set to conduct a second reading of a bill that, if passed, would establish a Bitcoin Reserve.
China April slowdown shows the impact of economic uncertainty
Trade war uncertainty is denting Chinese confidence, resulting in slower economic activity in April. Retail sales and fixed-asset investment both underperformed forecasts amid heightened caution. Yet the impact on manufacturing was less than feared.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.