- No comment on specific FX levels
- But important for currency to move in a stable manner, reflecting fundamentals
- Will take into account if there is any discrepancy between own view and market view on rate hike expectations
- But believes that there is some distance from neutral rate currently
- Previous rate hikes have had very limited impact on Japanese economy as a whole
- Can’t deny possibility of reaching inflation target in latter half of fiscal year 2025
It’s a lot of words and a roundabout way of him reaffirming that he still has a hawkish bias for the most part. But again, he’s just stopping short of explicitly confirming that he will favour another rate hike proposition in two weeks’ time.
This article was written by Justin Low at investinglive.com.