Ueda is in the Diet, taking questions.
- Says monetary policy is aimed at impacting inflation, not the yen rate
- will examine the impact of movement of the yen on the economy
- FX moves could have a big impact on the economy and prices, and so the impact of FX volatility could be bigger than in the past
- BOJ does not seek to directly control FX rates with monetary policy
- FX moves are among various factors that affect the economy and prices
- weak yen pushes up import costs, has an impact on the the economy in other ways, such as via demand
- the Bank of Japan may need to respond via monetary policy if such impact for yen moves affects trend inflation
- we expect trend inflation to gradually head towards 2%
- We will adjust monetary policy as appropriate if trend inflation
heads toward 2% as we project, or if we see risk of inflation
overshooting our forecast
USD/JPY is little changed after Ueda, and Suzuki a bit earlier. Circa 154.75.
This article was written by Eamonn Sheridan at www.forexlive.com. Source