BOJ governor Ueda: Japan economy is recovering moderately, although some weakness seen

  • Japan economy still faces many uncertainties
  • Prices remain high
  • Must pay attention to financial, FX markets and their impact on economy, prices
  • FX impact has become larger than in the past as firms are more eager to raise wages, prices
  • Will keep adjusting degree of policy easing depending on economic, price outlook
  • Need more data on wages outlook and more information on wage trends
  • Uncertainties surrounding US economic policies remain large
  • Will guide policy from standpoint of sustainably and stably achieving price target

If the call here is to keep waiting on wages, then there could be a line of thinking that they might wait until the spring wage negotiations again before making up their minds. USD/JPY is pushing higher now, up 0.5% to 155.60 on the day.

This article was written by Justin Low at www.forexlive.com. Source