BOJ Ueda: standard monetary policy to not immediately respond to supply-driven inflation

Ueda testimony before the lower house of the Diet as part of his nomination and confirmation process

More to come

• Need to guide monetary policy based on economy, prices and their outlook
• Takes certain time for effects of monetary policy to play out in economy
• Current monetary easing appropriate
• By supporting economy with monetary easing, boj BOJ The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with Read this Term must support corporate efforts to hike wages
• Will work closely with govt to guide policy appropriately
• Japan still needs more time for inflation to sustainably hit 2% target
• It is standard monetary policy to respond preemptively to demand-driven 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 but not immediately respond to supply-driven inflation
• Want to achieve price stability sustainably and stably
• Inflation to fall below 2% around the middle of the Next fiscal year

Japan's fiscal year begins April 1, so the middle is around October. Thus Ueda is expecting inflation to fall from October this year.

Re the points I have bolded above, this is what I was talking about earlier.