Uncertainties surrounding Japan’s economy, prices remain highMust pay due attention to financial markets and impact on the economy, pricesWill keep adjusting degree of easing if outlook on economy, prices is to be realisedWill monitor economic, market trends with extremely high sense of urgencyMarkets remain unstable (referring to Uchida’s take of not raising rates when it is)Risk of inflation overshoot have diminished to some extentThere is some time to make policy decision as upside risks to prices have decreased
USD/JPY dipped to a low of 141.75 right as Ueda began speaking but has now raced back up to 142.50 on the day. The points on market being unstable and that they perhaps can take their time in deciding on the next move is arguably contributing to the price action we’re seeing. That said, I wouldn’t say they’re anything new really.
This article was written by Justin Low at www.forexlive.com.
