BoJ Governor Ueda says Japan's economy is recovering moderately albeit with some weakness; will guide policy appropriately from perspective of stably and sustainably achieving the price target

• If trend inflation heightens as projected, will likely adjust degree of monetary accommodation.


• Risks for price outlook are both the upside and the downside.


• If economic and price forecasts change, there will be reason to adjust rates.


• Future development of FX rate and commodity prices is another risk.


• If inflation overshoots forecasts it will be appropriate to adjust interest rates somewhat sooner.


• If inflation undershoots forecast, accommodative policy is appropriate for longer.


• Will adjust daily bond-buying amount taking into account market developments, but will for now keep buying JGBs at roughly the same figure.


• Real interest rate remains deeply negative both in short and long term.


• Continue to assess market developments after March meeting, in the future it is appropriate to reduce size of bond buying.


• Japan's real interest rate is currently below various estimated values in natural rate of interest.


• There is no doubt financial conditions are accommodative in Japan.


• There is a chance inflation may overshoot expectations.


• We must also be vigilant to possibility moderating cost-push pressure could discourage firms from passing on rising wage cost to sales prices.


• It is becoming quite clear that trend inflation is heightening, and on track towards reaching 2% goal.

08 May 2024 - 09:34- Fixed IncomeImportant- Source: Newswires