Bank of Japan Governor Ueda speaking from parliament
expects strengthening in Japan wage-price cycle – underlying inflation to gradually acceleratesees Japan’s economy recovering moderatelymonitoring the FX impact on economy and inflationdata out since April roughly in line with BoJ estimates
We need to scrutinise data a bit more to judge whether underlying
inflation will heighten on a firm noteIf we become more
convinced that underlying inflation will accelerate toward our price
target, we will adjust degree of monetary easing by raising
short-term policy rate
Inflation-adjusted real wages continue to decline but expected to
slow pace of decrease as a trendCannot say now how
much BOJ will actually trim bond buying
Want to avoid using bond buying operation as a monetary policy tool,
means of communication on monetary policy
At their meeting the last week Ueda and the BOJ said they’d be announcing plans to trimg JGB purchases at the next meeting., July 30 and 31.
This article was written by Eamonn Sheridan at www.forexlive.com.
