Bank of Japan Governor Ueda, more remarks incoming
- True that rising import prices are being passed on to domestic prices more than expected
- Japan's consumer inflation , including index stripping away fuel costs, likely nearing its peak, seeing slowing ahead
- BOJ must maintain monetary easing as trend inflation still below 2%
- If it can be foreseen that trend inflation will reach 2%, BOJ must head toward policy normalisation
- How to revise YCC will depend on various factors, such as economic conditions, pace of inflation at the time
Ueda was asked what would be the conditions for the Bank of Japan to consider tweaking YCC:
- BOJ's inflation forecast 6 mths, 1 year, 1.5 year ahead must be quite strong and close to 2%
- cant say how the BOJ would specifically tweak YCC
Earlier:
BOJ Governor Ueda says he doesn't think Japanese property prices excessively overvalued
Yen has dropped. USD/JPY is on approach to its Friday high, there will be work to do around here.
