Bank of Japan Governor Kazuo Ueda recently addressed the press following the post-policy meeting, emphasizing the Bank’s commitment to adjusting the degree of easing to align with economic and price outlooks. This statement comes in the wake of the BoJ’s decision to maintain the benchmark interest rate at 0.15%-0.25% during its September policy meeting.
### Key Quotes from Governor Ueda:
– Japan’s economy shows signs of moderate recovery, with some weaknesses present.
– Uncertainties persist around Japan’s economy and prices, warranting attention to financial and FX markets’ impact.
– Overseas economies, particularly the US, remain volatile, influencing market stability.
– The Bank will closely monitor economic and market trends with a high sense of urgency.
– Inflation overshoot risks have slightly diminished, prompting a focus on overseas economic trends’ impact on corporate activities and earnings.
– Recent market movements are influenced by uncertainties surrounding the US and overseas economy.
– It is crucial to observe if the US economy achieves a soft landing or a harder correction.
– Real interest rates are at historic lows, allowing flexibility in monetary policy decisions.
– The impact of overseas economic trends on the BoJ’s outlook has no fixed timeline.
– Private consumption assessments have improved due to wage growth.
– Recent data align with the Bank’s economic outlook, hinting at a potential reassessment of underlying inflation.
### Market Reaction:
The USD/JPY pair exhibited minimal movement post-Governor Ueda’s comments, with a slight 0.13% decline to 142.48.
In conclusion, Governor Ueda’s statements shed light on the BoJ’s cautious approach to monetary policy, considering both domestic and international economic factors. The Bank’s focus on adjusting easing measures based on economic and price outlooks indicates a commitment to sustaining Japan’s economic recovery. Investors and market participants should monitor future developments closely, as global economic uncertainties continue to influence market dynamics and policy decisions.