Bank of Japan Governor Ueda on what inflation needs to do for a BOJ rate hike

Bank of Japan Governor Ueda:

  • Don’t have any preset idea on timing, pace of future rate hike
  • If trend inflation
    accelerates in line with our forecast, we will adjust degree of
    monetary support through interest rate hike
  • If our price forecast
    changes, that will also be a reason to change policy
  • Future monetary
    policy guidance will depend on economy, price, market development at
    the time
  • Didn’t say anything
    new on BOJ policy last week in Washington
  • Tredn inflation is still somewhat below 2%, so need to maintain accommodative monetary conditions for the time being
  • If geopolitical risks, weak domestic demand cause disruptions in
    markets, BOJ will respond through flexible, nimble liquidity

Nothing in that lot above is of any surprise. Ueda keeping his options open.

This article was written by Eamonn Sheridan at Source