Bank of Japan Governor Kazuo Ueda spoke at a seminar hosted by the Peterson Institute for International Economics on Friday. ICYMI from Ueda:
- BOJ must maintain loose monetary policy for the time being as underlying inflation remains "somewhat below" its 2% target, and long-term inflation expectations are still near 1.5%
- BOJ will also begin to cut its purchases of Japanese government bonds (JGBs) (timing and extent of the reduction are yet to be determined)
- "Irrespective of what the data will say in the near future, we will like to find a way and timing to reduce the amount of JGB purchases"
- "If underlying inflation continues to go up, we will very likely be raising interest rates"
