Bank of Japan Governor Ueda is answering questions in the parliament again today
- Japan’s economy is recovering moderately, although some weak data are seen.
- Consumption is improving moderately on easing cost-push pressure, with hopes for higher wages.
- Some firms appear to be delaying investment, though capital expenditure plans remain firm.
- We have seen various data since January, and more data will come out this week. We will look at these comprehensively in reaching an appropriate monetary policy decision.
- We are focusing on whether a positive wage-inflation cycle is kicking off, in judging whether sustained, stable achievement of our price target is coming into sight.
So far no real clue from Ueda on which way he is leaning, ‘data dependent’ seems to be the summary, specifically wages data. We’ll get some indication of the wage talk outcomes from the 13th of March, and more from the 15th. The BoJ meet on the 198th and 19th.
This article was written by Eamonn Sheridan at www.forexlive.com. Source