Bank of Japan Governor Ueda sounding like the prospect of another BoJ rate hike is receding:
- May need policy response but will decide appropriately in line with changing developments, when asked about BOJ response if U.S. tariff policy puts downward pressure on Japan’s economy
- Will scrutinise without any pre-conception impact of U.S. tariff policy on Japan’s economy, as is already affecting corporate, household confidence
- From February onwards, risks surrounding U.S. tariff policy have moved closer towards ‘bad’ scenario BOJ envisioned
- Expect domestic food inflation to moderate, real wages to stablise in positive territory from middle of this year
- See both upside, downside risks to price outlook
Bolding above is mine.
This article was written by Eamonn Sheridan at www.forexlive.com.
