Bank of Japan Governor Ueda is appearing in the Japanese parliament:
- Japanese economy modestly recovering despite some weakness seen
- Corporate profits are improving, with business sentiment solid
- As slowdown in overseas economy pressuring corporate profits, pace of economic growth expected to slow down
- Import prices pushing up inflation are expected to wane
- Uncertainties over overseas trade policies and economic, price situations remain extremely high
- Will continue to raise interest rates if economy, price move in line with forecasts
- Will conduct monetary policy appropriately depending on price, economic developments to achieve 2% target in a stable and sustainable manner
- Important to make judgment without any preset ideas
- Have said in outlook report that our baseline scenario could change significantly
- Will closely communicate with the government
- No preset plan for rate hikes, will raise interest rates only if economy, prices turn up again, outlooks likely to be realised
more to come
That final comment above is significant … Ueda wants to see the economy and price turn up again … this is a bit of a change
This article was written by Eamonn Sheridan at www.forexlive.com.