BoJ’s Ueda: Need to patiently continue monetary easing to support economy
|Bank of Japan (BOJ) Governor Kazuo Ueda is speaking at the post-July policy meeting conference on Friday, noting that they “need to patiently continue monetary easing to support the economy.”
Additional quotes
Today's decision is aimed at making YCC more sustainable.
Long-term rates could move beyond 0.5% cap.
Will flexibly respond to uncertainties of Japan economy.
Won't hesitate to easy policy further as needed.
Will respond to speed and level of long-term interest rates if they move beyond 0.5%.
Signs of change emerging from companies' price-setting behaviour.
There's still distance to achievement of 2% inflation target.
Will conduct consecutive fixed-rate purchase operations if long-term yield exceeds 1%, to curb yield jump.
Recent long-term yields are moving slightly below 0.5% level.
Not expecting long-term yield to rise to 1%.
Drastic changes to FY2023 price outlook suggests outlook in april was possibly underestimated.
No change to judgement that achievement of 2% inflation target is still distant.
Created 0.5-to-1.0% frame in addition to plus-minus 0.5% to respond to future risks.
Market reaction
In reaction to the above comments, USD/JPY is holding steady, currently testing 139.44, digesting Ueda’s remarks.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.