- If market volatility changes our view on prospects for achieving price goal, then that will influence our decision on rate hike path
- Hard to say how long it will take to gauge impact of market rout on economy, prices
- But BOJ has the advantage of being able to choose when to hike in a moderate rate hike environment
He is still casting some doubt over their ability to hike rates here. However, the language is not as hard as earlier when he said that they won't so long as markets are volatile. Now, he is saying that there is uncertainty introduced from the market volatility instead. That as well as him saying that there is no gap to his view and Ueda's is perhaps what traders are digesting now. USD/JPY is well off its earlier highs, now at 146.70 with the 100-hour moving average nearby at 146.50.
