The new governor of the Bank of Japan, (Boj) Kazuo Ueda, is providing more commentary on Friday as he participates in his first news conference following the monetary policy meeting. The fact that we are undertaking a review does not imply that prior instances of monetary easing were unsuccessful.
Trend inflation would need additional time to increase higher.
Will take care not to misinterpret the balance between the monetary policy’s effects and side effects.
The policy choice made today takes into account the financial unrest since March.
The state of the market is finally stabilizing.
Mid-sized financial institutions continue to raise questions.
The outcome of the labor negotiations next year will be crucial for inflation.
We don’t necessarily need to wait for the outcome of the salary negotiations, though.
In the past 25 years, monetary easing has been somewhat successful, but not sufficiently so to meet the 2% inflation objective.
We must accept that the current monetary policy has certain unintended consequences.
YCC is a policy that, as witnessed since last year, induces impacts and side-effects when inflation expectations are growing.
Ueda BoJ Statement Reaction on Market
In response to Ueda’s comments, the USDJPY pair has continued to rise sharply. As of this writing, the pair is up 1.30% on the day at 135.72.
