Bank of Japan deputy governor Uchida
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If economy, prices move in line with projections, it is appropriate
to adjust degree of monetary easing
degree, speed of fx moves' impact on prices bigger than in past
weak yen and subsequent rise in import costs pose upside risks to inflation - Short-term interest rate, at 0.25%, is still very low on real basis, so we continue to support economy with very loose policy
- Given rapid market volatility, we need to maintain current level of monetary easing
- Stock market volatility affects corporate activity, consumption so is important factor in guiding monetary policy
- Reversal of weak yen means risk of inflation overshoot has diminished, which would affect our policy
- Expect Japan's consumption to stay solid
- Changes seen in Japan's labour market are structural and irreversable
- Over 10 years of massive monetary easing has caused various side-effects
Earlier:
- BOJ deputy governor Uchida says the Bank's interest rate can change if needed
- USD/JPY surging on Uchida speech
USD/JPY rising rapidly:
