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BoJ: We will continue with QQE until inflation target is reached – Kazuo Ueda

The Bank of Japan will continue QQE until the inflation target is reached“Central bank governor Kazuo Ueda said on Tuesday.

Additional comments

Inflation expectations have remained low due to prolonged zero inflation and deflation.

Inflation and inflation expectations are rising.

In Japan a shift is gradually taking place in the norm that the public acts on the assumption that wages and inflation will stay low.

There is a gradual shift away from the deflationary mentality, according to which it is difficult for prices and wages to rise.

When the inflation target is reached, inflation expectations will also be at 2%.

Market reaction

At time of writing, the USD/JPY pair is trading near 139.50, down 0.09% on the day.

Source: Fx Street

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