Speaking at the press conference following the monetary policy meeting on Friday, the Governor of the Bank of Japan (BoJ), Kazuo Uedasaid the Bank “will analyze the impact of whether the strengthening of the Yen since August will impact prices “to the same extent that the previous weakness of the Yen had on prices.”
The BoJ left its benchmark interest rate at 0.15%-0.25% following its September policy meeting.
Highlighted statements
Today’s CPI data was slightly stronger than we had recently forecast.
There was evidence in today’s data that wage increases are being reflected in service prices.
Watching closely whether wage growth momentum will continue, services prices will continue to reflect wage growth and consumption will remain strong in the fall and beyond.
We will analyze how the US economy will impact the upcoming wage negotiations in the spring.
A soft landing for the US economy is our main scenario.
But the risk to a US soft landing is greater.
Our position has been that we will not use monetary policy to control exchange rates.
We do not react directly to exchange rates, but rather to their impact on the inflation outlook.
We want to take some time to see how elevated uncertainties affect our outlook when deciding the next policy step.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
