Bank of Japan Governor Ueda:
- Japan’s economy recovering moderately albeit with some weak signs
- Japan’s economy, prices moving roughly in line with our forecasts but must be vigilant to heightening uncertainty including from each country’s trade policy
- Japan’s financial system maintaining stability as a whole
- Japan’s real interest rates remain very low
- BOJ expected to keep raising interest rates if economy, prices move in line with projections made in our quarterly report
- We will scrutinise at each policy meeting without any preset idea whether economy moving in line with our forecasts
None of this comments from Ueda are surprising, he’s said the same in one way or anthioer many times.
More, getting more intresting now:
- We will guide policy appropriately while scrutinising domestic, overseas economic developments as well as markets and risks
- When BOJ raised rates in January, U.S. economy was in solid shape, markets had been stable
- Uncertainty surrounding U.S. policy, particularly on tariffs, has heightened sharply recently
Those final two points sound to me like Ueda hinting at an on hold deciison at the upcoming meeting in May (the meeting is April 30-May 1).
More:
- US tariffs impact Japan’s economy through various channels
This article was written by Eamonn Sheridan at www.forexlive.com.