BOJ Governor Ueda says concerns over US economy slowdown behind recent market rout

Hawkish headline comment from Bank of Japan Governor Ueda

  • concerns about slowing US economy caused recent market rout
  • closely watching market moves with a sense of urgency as uncertainties remain
  • domestic and overseas markets remain unstable
  • decided to raise rates in July due to risk of price overshoot driven by import costs
  • economy is moving in line with price target protections
  • important to communicate with the public on BOJ’s thinking
  • The Bank of Japan July rate hike decision was based on our inflation forecast and the risk of an inflation overshoot

More, this from a senior BoJ official:

  • Japan’s real interest rate remain deeply in negative territory, so
    accommodative monetary condition is maintained
  • Need to take time
    to decide with what to do with ETF held by BOJ
  • Not thinking
    about getting rid of ETF immediately

more to come

This article was written by Eamonn Sheridan at www.forexlive.com. Source