Kazuo Ueda, governor of the Bank of Japan (BoJ), stated on Tuesday that “the impact of recent US and European bank failures on Japan’s financial system is likely limited. “Lessons from the recent problems in the banking industry are likely to be highlighted at upcoming international gatherings, including this week’s meeting of the G7 financial chiefs.
Financial institutions in Japan have enough capital reserves.
There will be no predetermined plan for a specific monetary policy action during our scheduled review.
Boj will terminate YCC and subsequently reduce its balance sheet if pricing objective is achieved in a sustained, steady way.
Positive trends are emerging, notably with regard to inflation predictions.
Market response on BoJ, Statement
As investors consider the aforementioned remarks, USDJPY is now trading mildly flat at around 135.15.
