BoJ's Ueda: Recent recession is a rebound from strong previous quarters


Bank of Japan (BoJ) Governor Kazuo Ueda hit newswires early in the Friday market session, noting that the BoJ remains skeptical that Japanese inflation will be able to sustain 2% price growth.

Key highlights

  • Recent recession is a rebound from strong quarters.
  • Inflation is easing at a faster pace.
  • Wage negotiations will offer a tailwind.
  • Japan's economy will continue to recover gradually.
  • No change in view that Japan's economy is to recover moderately.
  • Japan's economy not yet in a situation where sustained 2% inflation is foreseeable.
  • Higher wage growth demand from labor unions YoY, big firms show interest in hiking wages.
  • BoJ's Ueda wants to consider collective outcome of wage talks and firm hearings before assessing wage data.
  • Japan GDP was negative in Q4, but economy likely flattening after strong growth due to post-COVID reopening.
  • Expects recovery in Japan's consumption with solid results from spring wage talks.
  • Soft landing in global economy, specifically the US, is becoming baseline view, which aligns with January projections.
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