Bank of Japan Governor Ueda speaking from parliament
- expects strengthening in Japan wage-price cycle - underlying inflation to gradually accelerate
- sees Japan's economy recovering moderately
- monitoring the FX impact on economy and inflation
- data out since April roughly in line with BoJ estimates
- We need to scrutinise data a bit more to judge whether underlying inflation will heighten on a firm note
- If we become more convinced that underlying inflation will accelerate toward our price target, we will adjust degree of monetary easing by raising short-term policy rate
- Inflation-adjusted real wages continue to decline but expected to slow pace of decrease as a trend
- Cannot say now how much BOJ will actually trim bond buying
Want to avoid using bond buying operation as a monetary policy tool, means of communication on monetary policy
At their meeting the last week Ueda and the BOJ said they'd be announcing plans to trimg JGB purchases at the next meeting., July 30 and 31.
