US economy achieving soft landing is our main scenarioIf US economy achieves soft landing, negative impact on Japan economy would be smallJapan interest rate is probably still lower than neutral rate despite rate hikesWe don’t react directly to forex rates but their impact on inflation outlookWe will not use monetary policy to control forex rates
The yen is falling further as he continues to speak with USD/JPY now driving up to 143.40 levels on the day. And that despite the dollar remaining somewhat sluggish elsewhere, though the changes there remain light. A key message from Ueda is also that “the current uncertainty won’t lead to a quick decision on hiking rates”.
This article was written by Justin Low at www.forexlive.com.
