If the Bank of Japan sees that it can achieve its price target, it might need to normalize monetary policy, says Governor Kazuo Ueda as his term begins.
“If the BOJ suddenly realizes that inflation will stably and sustainably hit 2% and decides to normalize monetary policy, it will have to make very big policy adjustments,” Ueda said in an inaugural news conference on Monday, April 10.
“When looking at current economic, price, and financial developments, it’s appropriate to maintain yield curve control for now,” Ueda said. “Ueda signaled that inflation and economic conditions did not warrant a big rise in interest rates,” said Shingo Ide, chief equity strategist at NLI Research Institute. “The chance of a policy tweak in April has diminished significantly,” he said.If the BOJ sees that it can achieve its price target, it might need to normalize monetary policy, Ueda said. “If not, we may need to come up with a more sustainable framework with an eye on the side effects of monetary easing.
Ueda said he was mindful of the side effects of prolonged easing and stressed the need to ensure Japan’s banking system remains sound. Long-stagnant inflation and wage growth in Japan are beginning to show signs of reviving. After touching a 41-year high of 4.2% in January, core consumer inflation remains above 3% as more firms hike prices in response to rising raw material costs.wage hikes of nearly 4% this year in annual labor talksUeda will chair his first policy meeting on April 27 to 28, when the board produces fresh quarterly growth and price forecasts extending through fiscal 2025.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Possible next steps for BOJ policy under new governorNew Bank of Japan Governor Kazuo Ueda’s main challenge will be to phase out its controversial yield curve control policy, which has come under criticism for distorting markets by keeping long-term interest rates from rising. | Reuters
Baca lebih lajut »
New Bank of Japan chief to slowly unwind Kuroda's policy experimentMarkets are rife with speculation that Kazuo Ueda, the new Bank of Japan governor, will dismantle his predecessor Haruhiko Kuroda's massive stimulus program.
Baca lebih lajut »
Japan’s new central bank chief assumes office as global risks loomJapan’s new central bank governor Kazuo Ueda faces a bumpy road as slowing global growth clouds prospects for a sustained pickup in inflation and wages, a prerequisite for phasing out his predecessor’s controversial monetary stimulus. | Reuters
Baca lebih lajut »
Texas governor seeks pardon of man convicted in Black Lives Matter shootingThe Republican governor notes that he can grant pardons only on the recommendation of the state's Board of Pardons and Paroles, but that he is allowed to request pardons.
Baca lebih lajut »
Cebu governor bans unsanctioned ASF testing, threatens to arrest violatorsCebu Governor Gwendolyn Garcia released a memorandum that prohibits agencies from collecting samples of blood, serum, tissue, or any other organ of pigs amid the reported cases of African swine fever in some parts of the province.
Baca lebih lajut »
Heroes or villains: Short sellers' role in the US bank crisisHow much short sellers contributed to the downward spiral reprises the debate about whether so-called shorts are market watchdogs or opportunistic investors who profit from others’ misery.
Baca lebih lajut »