- Major issue is where to stop raising rates when getting closer to neutral rate
- But Japan is definitely far below the uncertain levels of neutral rate now
- Economic indicators to be watched include wages, inflation, service prices, GDP output gap
- Hard to comment on FX impact of stronger yen on economy, prices
- The impact of a stronger yen compared to a weaker yen is an “interesting matter”
There was a bit of a mistranslation there earlier with the initial headline reading:
*BOJ GOV UEDA: DON’T HAVE 0.5% POLICY RATE IN MIND
This has since been corrected to:
*BOJ GOV UEDA: DON’T HAVE 0.5% POLICY RATE IN MIND AS A CEILING
It’s a minor change but a consequential one with a very different meaning. USD/JPY fell as a result from around 152.60 to 152.10 before keeping around 152.30 levels currently – down 0.3% on the day.
From Reuters:
This article was written by Justin Low at www.forexlive.com. Source