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BOJ's Nakagawa: Japan's economic outlook remains highly uncertain from January onward

Bank of Japan (BOJ) monetary policy board member Junko Nakagawa said in a statement on Thursday, “Japan's economic outlook remains highly uncertain from January onward.”

Additional quotes

Japan's exports, output continue to rise as a trend.

impact of supply constraints appeared to have peaked but automakers' output cuts continuing.

Risks to Japan's economy skewed to downside for time being, evenly balanced thereafter.

Overseas growth, mainly emerging economies, may undershoot expectations if global monetary conditions tighten more than expected.

Upward pressure on Japan's inflation may remain strong for time being.

Japan's core consumer inflation may approach 2% temporarily.

Meanwhile, Japan’s Chief Cabinet Secretary Hirokazu Matsuno said that they “plan to hold a ministerial meeting on Friday to compile measures to respond to higher oil prices.”

Market reaction

USD/JPY is wavering in a narrow range between 115.44-115.70, as investors remain cautious amid impending Russia-Ukraine peace talks and ahead of Friday’s US NFP data.

The spot, however, is up 0.12% on the day, courtesy of the safe-haven demand for the US dollar.

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