BoJ’s Ueda: Our basic stance is to continue raising interest rates
Bank of Japan (BoJ) Governor Kazuo Ueda reaffirms that the direction of the monetary policy remains on the upside, while speaking at the Kisaragi-kai Meeting on Wednesday.
Remarks
Our basic stance is to continue raising policy rate in accordance with economic, price, financial developments.
This year's oil price increase is not as large as in the first oil crisis, but it is comparable in magnitude to the other shocks.
Likely that a rise in crude oil prices will push up the prices not only of energy, but also prices in general, particularly of a wide range of goods.
BoJ will continue to raise policy rate at appropriate pace if it judges that likelihood of realizing baseline scenario will rise.
Even if situation regarding middle east remains unclear, should it be judged that upside risks to prices outweigh downside risks to economic activity, it will be necessary to thoroughly discuss pros and cons.
Market reaction
A wild upswing appeared in the Japanese Yen (JPY), following hawkish comments from BoJ Governor Kazuo Ueda. However, the currency seems to have failed to hold gains and falls back. However, USD/JPY is still 0.12% down to near 159.75 as of writing.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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