Bank of Japan Governor Kazuo Ueda said on Monday that wages and import prices were affecting inflation in the country.
Speaking today, Ueda stressed that the recent rise in crude oil prices will exert inflationary pressure, especially for fiscal year 2024, but noted that producer inflation has weakened since the start of 2023.
He noted that companies may be starting to expect a continuous increase in costs such as wages and therefore the likelihood of meeting expectations of a 2% price stabilization target is gradually increasing. "
Ueda stressed that the central bank will remain patient and maintain its facilitative monetary policy along with controlling the Japanese government's bond yield curve, and we do not expect Japan's 10-year bond yield to rise sharply above 1% even after the recent YCC adjustment.
An exit from ultra-lenient monetary policy is also far from imminent.
