Bank of Japan (BOJ) Governor Kazuo Ueda on Tuesday stressed the need to keep monetary policy ultra-loose for now, but signalled the chance of raising interest rates if inflation and wage growth overshot expectations.
"In light of current economic, price and financial developments, it's appropriate to maintain monetary easing, now conducted through yield curve control," Ueda told parliament.
Ueda reiterated the need to keep Japan's monetary policy loose to achieve the BOJ's 2% inflation target in a sustainable, stable fashion accompanied by wage hikes. Ueda's comments come ahead of the BOJ's two-day policy meeting that kicks off on Thursday, which will be the first meeting he chairs since taking the helm earlier this month., the BOJ is expected to keep unchanged its monetary settings and dovish policy guidance to support a fragile economic recovery and budding signs of wage growth.
In a sign he was in no rush to hike rates, Ueda said tightening monetary policy now could push down future inflation, which is already seen slowing as import costs peak.The BOJ must guide policy keeping in mind that it takes a long time for changes in monetary settings to affect demand and prices, he added.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BoJ Governor Ueda: Japan's consumer inflation likely nearing its peakNew Bank of Japan (BoJ) Governor Kazuo Ueda said on Monday, “Japan's consumer inflation, including index stripping away fuel costs, likely nearing its
Read more »
USD/JPY aims to surpass 134.50 as BoJ Ueda warns Japan CPI peaking soonerThe USD/JPY pair is making efforts for recapturing the immediate resistance of 134.50 in the Tokyo session. The major has got strength as new Bank of
Read more »
BoJ Ueda: It is reasonable to continue easing with YCCNew Bank of Japan (BoJ) Governor Kazuo Ueda speaking in Parliament says it is appropriate to continue with yield curve control, YCC. Key comments Japa
Read more »
BoJ Governor Ueda: Trend inflation remains below 2% but gradually acceleratingWhile speaking in the Japanese parliament on Tuesday, new Bank of Japan (BoJ) Governor Kazuo Ueda said, “trend inflation remains below 2% but graduall
Read more »
Major central banks cut dollar operations with Fed as market stress easesIn a joint statement on Tuesday, The European Central Bank (ECB), the Bank of Japan (BoJ), the Bank of England (BoE) and the Swiss National Bank (SNB)
Read more »
Japan: BoJ expected to keep monetary policy unchanged – UOBEconomist at UOB Group Lee Sue Ann sees the BoJ gradually moving towards an exit of the ultra-accommodative stance. Key Quotes “This will be new BoJ G
Read more »