BoJ's Ueda says the domestic economy is recovering moderately, though some weak moves are seen

• Uncertainties around the economy and prices remain high.


• FX impact on prices is larger than has previously been the case, as firms are more eager to announce wage and price hikes; no comment on FX fluctuations.


• Will keep adj. the degree of easing if the economic/price outlook is realised.


• Need to closely watch the impact of overseas economies, incl. the US economy and Japan's economic activities/prices.


• Open minded on timing of future moves.


• Re. the US data, not yet at a stage where we feel at ease thought there are improvements seen in the data. Risks in the economy have decreased somewhat.


• Will continue to analyse the impact of JPY weakness on the economy.


• Did not need to use the language at this meeting that they can afford to spend time scrutinising risks.


• Wage data is becoming in-line with the 2% inflation target. Focus will be on whether wage growth continues above the inflation target.


• Uncertainties remain but markets have slowly regains stability.


• Early-August rout had no negative impact on the domestic financial system, no huge negative impact seen on lenders sentiment from the July move.


• Long-term policy review would include discussions on the neutral rate.


• 2025 & 2026 inflation outlook certainty will be lower than in 2024.


• Attentive to the trend that weak JPY's upward risks to prices are bigger than in the past.


• "When certainty if meeting our outlook heightens, we will start to see the possibility of the next rate hike"


• "Next rate hike can be seen when we come more confident of realisation of our outlook"


• Possible that unforeseen negative effects could emerge with more rate hikes, because Japan has not seen rate hikes for a long time


• Can't currently say how much wages would need to increase for them to hike further; if wage hikes are similar to this year's Spring negotiations that would be a "positive development", but that does not mean we decide to hike with only that.


• A next step would be difficult if the US economy risks similar to levels of August remain


• Not thinking political situations would directly impact price outlook


• "Have not seen major turmoil as we took our actions towards the exit"


• Will not use the term "we can still afford time" going forward

31 Oct 2024 - 06:25- Fixed IncomeImportant- Source: Newswires