The Bank of Japan held interest rates steady on Thursday and almost maintained its forecast that inflation will remain close to the 2% inflation target in the coming years, indicating its readiness to continue to retreat from massive monetary stimulus.
The statements of the governor of the Bank of Japan Kazuo Ueda at his press conference were as follows:-
- We will continue to adjust the degree of easing if we want to achieve economic and price expectations.
- We must pay due attention to the financial and foreign exchange markets and their impact on the economy and prices.
- I will not comment on the US elections, but we are monitoring the relevant risks.
- The impact of foreign economies should be closely monitored, including the US economy as well.
- Publication of the results of the long-term policy review after the December meeting.
- I will not make preconceptions about the timing of the next rate hike, we will discuss the policy at each meeting, we will still rely on the data.
- I don't want to comment on the movements of the foreign exchange market.
- Wages are rising by about 3% this fiscal year, in line with the 2% inflation target.
- We are watching the rise in prices for services in Tokyo, and whether it will spread nationwide.
Not much has changed in Ueda's statements, he does not offer much of anything new, and this keeps the possible move in December on the table, But given the recent political considerations, it may be better for them to move in January next year.
Traders were worried that the Bank of Japan would postpone raising interest rates after the turmoil in the Japanese elections, but the central bank's statement did not contain any such message, which helped the yen to rise against most pairs, and the US dollar pair fell against the Japanese yen around the levels of 152.30 now.
