August 07, 2024 at 02:47AM
Bank of Japan deputy governor Uchida
If economy, prices move in line with projections, it is appropriate
to adjust degree of monetary easing
degree, speed of fx moves’
impact on prices bigger than in past
weak yen and subsequent
rise in import costs pose upside risks to inflation
Short-term interest
rate, at 0.25%, is still very low on real basis, so we continue to
support economy with very loose policy
Given rapid market
volatility, we need to maintain current level of monetary easing
Stock market
volatility affects corporate activity, consumption so is important
factor in guiding monetary policy
Reversal of weak yen
means risk of inflation overshoot has diminished, which would affect
our policy
Expect Japan’s
consumption to stay solid
Changes seen in Japan’s labour market are structural and irreversable
Over 10 years of
massive monetary easing has caused various side-effects
Earlier:
BOJ deputy governor Uchida says the Bank’s interest rate can change if needed
USD/JPY surging on Uchida speech
USD/JPY rising rapidly:
This article was written by Eamonn Sheridan at www.forexlive.com.