BoJ’s Ueda: Today's policy decision took into account financial turmoil since March
More comments are flowing in from new Bank of Japan Governor Kazuo Ueda on Friday, as he addresses his first press conference that follows the monetary policy meeting.
Key quotes
Our conducting a review does not signify stance that monetary easing in past was ineffective.
It would take more time for trend inflation to heighten further.
Will be careful not to misread balance between effects and side-effects of monetary policy.
Today's policy decision took into account financial turmoil since March.
Market conditions are stabilising now.
Concern lingers over mid-sized financial institutions.
Next year's labour talks will be very important factor for inflation.
But doesn't mean we need to wait for wage talk results to make any decision.
Monetary easing in past 25 years were effective to some extent, but not successful enough in terms of achieving 2% inflation target.
Must acknowledge side-effects of current monetary policy are present in some areas.
YCC is a policy that prompts effects and side-effects when infaltion expectations are rising, as seen since last year.
Market reaction
The rally in the USD/JPY pair remains relentless on Ueda’s remarks. The pair is adding 1.30% on the day at 135.72, as of writing.
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.
