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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
