BOJ’s Ueda: Underlying inflation is still somewhat below 2%

March 13, 2025 at 03:24AM

Expect underlying inflation to gradually accelerate as economy continues to recover

Nothing too notable here.

BOJ is gradually shrinking the size of its balance sheet, ideal size will be taking into account overseas examples

Size of Japan’s monetary base and balance sheet somewhat too big now, which is why we are slowing bond buying

It’s quite a few steps from slowing bond buying to shrinking the balance sheet.

Expect Japan’s real wages and consumption to gradually improve as rise in import costs seen moderating, wage growth expected to stay strong

This article was written by Adam Button at www.forexlive.com.

BOJ’s Ueda: Underlying inflation is still somewhat below 2%