Private consumption remains solid despite inflation impact weighingWage hikes are becoming more widespreadRising wages will continue to support private consumptionDoesn’t believe rate hike will have significant negative impact on the economyDoes not have 0.50% policy rate in mind as a ceilingWill analyse impact of rate hikes up until now when considering additional rate hikes to comeDoesn’t believe economy, prices will slow due to additional rate hike
There was a bit of a mistranslation there, as the point of 0.50% policy rate missed a dropped word on it being a ceiling. USD/JPY is now down to 152.10 on the day. Ueda does say though that a weak yen didn’t have much impact on their price outlook.
This article was written by Justin Low at www.forexlive.com.
