On the 20th, Bank of Japan Governor Kazuo Ueda reiterated his intention to continue with the current monetary easing policy, stating, “There is extremely high uncertainty surrounding the domestic and overseas economies and financial markets.” I gave a speech at the National Credit Union Convention held in Tokyo.
Governor Ueda stated, “We will persistently continue monetary easing while responding flexibly to economic, price, and financial conditions,” and added, “We will aim for 2% price stability, accompanied by wage increases.” We aim to achieve this in a sustainable and stable manner.”
Risk factors include overseas economic and price trends, trends in resource prices, and corporate wage and price setting behavior, and “it is necessary to pay close attention to trends in financial and foreign exchange markets and their impact on Japan’s economy and prices.” “There is,” he pointed out. On the other hand, he recognized that Japan’s financial system as a whole maintains stability.
Regarding the outlook for prices, he said, “As the impact of price pass-through fades, the margin of increase will narrow,” and “after that, medium- to long-term inflation expectations and wage increases will rise. “We will gradually expand the positive range again.”
Kazuo Ueda Governor of the Bank of Japan
Photographer: Hollie Adams/Bloomberg
On the same day, Japan’s long-term interest rates rose to 0.845%, the highest level since July 2013, due to rising US long-term interest rates and speculation about monetary policy revisions by the Bank of Japan, approaching the 1% limit set by the Bank of Japan. With consumer prices trending higher than the Bank of Japan’s expectations, the market is paying close attention to the advance information released by the Bank of Japan ahead of its monetary policy meeting on the 30th and 31st.
other remarks
Japan’s economy is recovering moderately.The economy is expected to continue to recover moderately.After that, growth will continue to exceed the potential growth rate.
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2023-10-20 07:02:43
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