2023-06-16 06:51:35
Bank of Japan Governor Kazuo Ueda said on Thursday that a major change in the outlook for consumer prices might lead to policy changes. He held a press conference following the monetary policy meeting.
Governor Ueda said, “If there is a clear change in the outlook for prices, even if there is not much progress at present, we will flexibly change policy.” He has not moved to normalize monetary policy because he sees the possibility of prices falling below 2% going forward, but “if the outlook changes significantly, it will lead to a change in policy.” also said.
At the same time, he reiterated that it would take more time to achieve the BOJ’s price stability target of 2%. Although there are signs of changes in corporate pricing and wage settings, he also acknowledged that the future is highly uncertain, including the impact of corporate pricing and wage increases. On that basis, he said, “I would like to carefully scrutinize the outlook for economic activity and prices,” which will be presented in the next economic and price outlook (Outlook Report) in July.
Governor Ueda said he would not comment specifically on the exchange rate level or reasons for fluctuations in the recent yen depreciation. He also said it is important to remain stable in line with the fundamentals.
other remarks
- When the yen depreciates, there are various positive and negative effects
- A certain amount of surprise is unavoidable – YCC
- Measures taken since December last year have significantly improved indicators related to market functioning
- Solid trend of the Japanese economy and high corporate earnings outlook – high stock prices
At the meeting on the same day, the Bank of Japan decided to continue the current large-scale monetary easing policy centered on yield curve control (long-term interest rate control, YCC). Perceptions of the economy and prices also mostly maintained their previous expressions. More than 90% of 47 economists polled by Bloomberg said they expected the meeting to maintain the status quo on monetary policy.
Bank of Japan decides to continue large-scale monetary easing, maintains price outlook; yen depreciates
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