BOJ Governor Ueda remarks: markets are still unstable, moves have been volatile

The statements of the governor of the Bank of Japan Kazuo Ueda in front of the Japanese parliament today were as follows:

- We closely monitor the market situation with a high sense of urgency.

- The market is still unstable at the moment.

- When market movements are large, we will consider how this affects our expectations in making a decision on policy.

- The market volatility that we experienced earlier this month was due to concerns about the US economy.

- Real interest rates are likely to remain negative, and easy financial conditions will continue to support the economy.

- By maintaining the current monetary policy position, we will get closer to achieving the inflation target.

- The exchange rate is determined by various factors.

- It is important that the currencies move in a stable way that reflects the fundamentals.

- The momentum of wage growth is spreading to the macroeconomy but there are some disparities between companies.

- The Bank of Japan will meet next September 20, and almost no one thinks about raising interest rates at that time.

There is a minority in the markets expecting a possible move next October, but given the above remarks and how Ueda emphasizes that the markets are unstable, they don't seem to feel comfortable creating more shocks by raising interest rates again during the coming period at least.