Bank of Japan Governor Ueda testified in Parliament today citing uncertainty over when the BOJ will change its ultra-easing policy
- Will patiently maintain easy politics.
- Allen's weakness has pros and cons.
- I can't say crucially that the yen's weakness is having a negative impact on Japan's economy
- A weaker yen pushes domestic inflation higher by rising import costs
- The yen's weakness is positive for exports and profits of Japanese companies operating globally
- I won't comment on foreign exchange levels.
- Japan's economy is likely to continue to recover moderately.
- Japan's inflation trend is likely to gradually accelerate towards 2% during fiscal 2025
- We must carefully monitor the impact of market movements on the economy and prices including foreign currencies.
- There remains a great deal of uncertainty over whether Japan could experience a positive cycle of wage inflation.
- Government and BOJ share view on desirable direction regarding economy and inflation
- Don't expect Japan's 10-year government bond yield to rise sharply above our 1% reference even if yields come under upward pressure.
