Bank of Japan Governor Nominee Ueda
Ueda testimony before the lower house of the Diet as part of his nomination and confirmation process,
So far:
BOJ Ueda: standard monetary policy to not immediately respond to supply-driven inflation
More now:
- To continue monetary easing to realise wage hikes
- Want to appropriately liaise with other central banks and communicate with markets
- Enhancing labour productivity is becoming more important given limit to labour supply
- Inflation rate is peaking out
- Price rises will continue but rate of inflation will slow substantially from next cpi data
- BOJ can move toward normalizing monetary policy if there is more evidence inflation of 2% can be foreseen
- There are some positive signs in trend inflation but there is still some distance to hitting boj price goal
- There is no single data that shows trend inflation, which must be gauged by looking at various indicators
- What's important is to look at trend inflation
- The 2% inflation target is a global standard
More:
- Real wages are important but central banks have no tools to directly influence real wage growth
- if appointed as governor, I will consult with other board members and if judged needed, consider conducting comprehensive review of policy framework
- it is hard to demonstrate monetary strength if interest rates are close to zero
USD/JPY is continuing its chop:
