BOJ governor Ueda says will adjust degree of monetary easing if underlying inflation rises

  • Easy financial conditions will be maintained for the time being
  • Monetary policy conduct from now on will depend on state of economy, prices at the time
  • Will not judge policy based on one single indicator
  • Economy outlook, risk overshoot may also be a reason for policy change
  • Japanese economy has recovered moderately but some weakness is still seen
  • Must pay attention to financial, FX market moves and their impact on economy, prices
  • Monetary policy not aimed to control exchange rate directly

Nothing out of the ordinary from Ueda just yet. He’s stressing on data dependency for the most part. Besides that, he is trying to reaffirm that they still have their options to raise rates further if need be. That despite recent inflation data not really working in their favour.

This article was written by Justin Low at Source