The Governor of the Bank of Japan, Kazuo Ueda, stated on Friday that “When the sustained and stable achievement of the price objective is in sight, we will examine the advisability of maintaining various flexibility measures, including the negative interest rate“.
Additional comments
The specific way to reduce stimuli will depend on the economic conditions of the moment.
Based on the current economic and price outlook, Japan's monetary conditions are likely to remain accommodative even after ending negative rates..
The labor market remains tense.
Companies are likely to pass on cost increases to prices.
Wages are expected to rise slightly more than the expected inflation of 1.8% for fiscal year 2025.
No comments on short-term currency fluctuations and the factors underlying the movements.
Source: Fx Street
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