The governor of the Bank of Japan (BOJ), Kazuo, speaks at the press conference after the monetary policy meeting on Wednesday, explaining the bank’s decision to maintain the stable interest rate at 0.50%.
Outstanding statements
Japan’s economy is recovering moderately, although some weak movements are observed.
The uncertainties surrounding the economy and prices of Japan, including the trends of global commercial policy, remain high.
Due attention should be paid to currency markets, their impact on Japan’s economy and prices.
The impact of currencies on prices has become greater than in the past, since companies are more willing to increase wages and prices.
We will continue adjusting the degree of flexibility if our economic and pricing perspective is performed.
It will guide politics from the point of view of achieving in a sustainable and stable way the price objective.
This shucent result is largely in line with our January vision.
Salary trends should be carefully examined.
A strong impulse of salary increases is spreading to smaller companies.
It is necessary to carefully monitor developments in salaries.
We are aware that the price increase is having a negative impact on homes.
It is necessary to take into account that the increase in food prices, including rice, could change housing inflation expectations.
The US tariff policy, the objectives have expanded rapidly in the last month.
We will continue to examine the impact of US commercial policy on us, in the global economy and in Japan.
There are still great uncertainties in US tariff policy.
The underlying inflation is gradually approaching 2%, which has allowed us to gradually adjust the degree of monetary flexibility.
The BOJ has reduced its JGB purchases as planned.
We still need some time to consider what to do with the BOJ ETF holdings.
The basic position has been to proceed with the reduction of purchases as planned, but will be adjusted as necessary.
history in development …
Market reaction
USD/JPY It remains with a strong demand after these comments. The torque was last operating 0.27% higher on the day about 149.75.
Japan Faqs Bank
The Bank of Japan (BOJ) is the Japanese Central Bank, which sets the country’s monetary policy. Its mandate is to issue tickets and carry out monetary and foreign exchange control to guarantee the stability of prices, which means an inflation objective around 2%.
The Bank of Japan has embarked on an ultralaxa monetary policy since 2013 in order to stimulate the economy and feed inflation in the middle of a low inflation environment. The bank’s policy is based on the Quantitative and Qualitative Easing (QQE), or ticket printing to buy assets such as state or business bonds to provide liquidity. In 2016, the Bank redoubled its strategy and relaxed even more policy by introducing negative interest rates and then directly controlling the performance of its state bonds to 10 years.
The massive stimulus of the Bank of Japan has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to combat inflation levels that have been in historical maximums. Japan Bank’s policy to maintain low types has caused an increase in differential with other currencies, dragging the value of YEN.
The weakness of the YEN and the rebound in world energy prices have caused an increase in Japanese inflation, which has exceeded the 2% objective set by the Bank of Japan. Even so, the Bank of Japan judges that the sustainable and stable achievement of the 2%objective is not yet glimpsed, so an abrupt change of current monetary policy seems unlikely.
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.
