BOJ Kuroda: Inflation impact from rising import prices likely to start diminishing in 2023

Bank of Japan Governor Kuroda

• Cost-push inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term driven by rising import costs is likely to start dissipating in 2023
• the upward revision in the BOJ's October report reflects our view that prices are likely to gradually rise accompanied by wage hikes

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I noted last Friday the change in tone from the BoJ on rising wages:

• USD/JPY is a touch lower after the BOJ statement - minor crack in BOJ resolve?

Kuroda adding to the Outlook Report's assessment on wage gains may well be just some sort of effort to prop up the JPY JPY The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by Read this Term. But, it is a notable change from the Bank and is worth paying attention to.+

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More:

• Appropriate to continue monetary easing to support economy for now
• Most appropriate policy now is to put downward pressure on entire yield curve with YCC
• Making YCC more flexible is a future policy option but not something to do now