As the governor of the Bank of Japan Kazuo Ueda said in a speech to Parliament today:-
- Inflation in the country is accelerating as a trend as a tight labor market leads to higher wages.
- The necessary conditions for the termination of negative interest rates have come into place.
- The Japanese economy is likely to witness a positive cycle, as rising jobs and wage growth lead to moderate rises in inflation.
- Prices of services continue to rise moderately and the inflation trend is gradually accelerating - We will appropriately direct monetary policy in line with such moves.
- 1% interest rate hike will result in a 40 trillion yen valuation loss for the Bank of Japan's holdings of Japanese government bonds.
- It is desirable that the foreign exchange market moves stably reflecting the fundamentals.
- No comment on the performance of the forex market.
