Bank of Japan Governor Ueda
- BoJ expected to maintain accommodative monetary policy for the time being.
- Accommodative monetary policy likely to underpin the economy.
- Cost-push pressure on inflation dissipating but service prices continue to rise moderately.
-
Recent wage negotiation data, hearing on companies confirmed
wage-inflation cycle strengthening - Medium, long-term
inflation expectations heading toward 2% - BOJ will support
economy, prices by maintaining accommodative monetary conditions for
time being - We could have waited
until inflation stays at 2% for long time, before exiting massive
stimulus but that could have led to sharp increase in upside risk to
price outlook -
Don’t think our latest decision will lead to sharp increase in
mortgage loan rates, cost of corporate
USD/JPY has dropped and is dropping a little further on Ueda:
This article was written by Eamonn Sheridan at www.forexlive.com. Source