Bank of Japan Governor Ueda once more – If costs overshoot will take stronger steps

Bank of Japan Governor Ueda (Headlines via Reuters):

• If price risks overshoot our expectations, we will take stronger steps to adjust degree of monetary support
• Japan’s economy is in state of inflation, when judging from recent movements in CPI
• In judging whether underlying inflation hits 2%, one factor we are looking at is whether recent signs of wage growth continue
• Key factor is whether wage hikes of around 3% are sustained, whether solid outcome so far in this year’s wage talks broadens
• We are also looking at whether wage gains will push up services prices, heighten medium- and long-term inflation expectations
• At our March policy meeting, we saw wage hikes broaden and move in line with our projections made in January

Earlier:

• BoJ Gov Ueda again: If food inflation is temporary, shouldn’t respond with monetary policy

• Bank of Japan Governor Ueda says expects underlying inflation to accelerate gradually
• Bank Japan Governor Ueda says cost-push inflation factors likely to gradually dissipate

This article was written by Eamonn Sheridan at www.forexlive.com.