BoJ’s Ueda: Will adjust degree of monetary support if inflation moves as expected

Dhwani Mehta FXStreet

“If underlying inflation moves as we project, we will adjust the degree of monetary support,” Bank of Japan (BoJ) Governor Kazuo Ueda said on Tuesday.

Additional quotes

If our economic, price projections and assessment of risks change, that will also be reason to change interest rate levels.

Our policy goal is price stability, so won't guide policy to fund fiscal spending.

Our basic stance is to allow markets to set long-term interest rates.

We have maintained current pace of bond buying to avoid big discontiniuity in bond buying operations.

We are ready to conduct nimble market operations if there are sharp rises in long-term rates.

Not thinking about introducing central bank digital currency.

Market reaction

USD/JPY is retreating slightly from 156.50 on these above comments, currently trading at 156.36, up 0.18% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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