The Kuroda era is finally ended and Ueada takes a steer of the Bank of Japan. Today we have the first public press conference of the new BoJ's boss who met with the prime minister earlier. Here are some remarks from the meeting and press conference:
- The BoJ's monetary stimulus has helped pull Japan out of deflation
- We have agreed with PM Kishida that there is no immediate need to change the 2013 joint statement with the government
- Discussed the need to guide policy flexibly given the economic uncertainty
Press conference:
- We will do our best for the stability of prices and the financial system (Ueda)
- Our goal is to bring a virtuous economic cycle with easing (Himino)
- BoJ faces the undertaking of making various efforts to sustain monetary easing (Uchida)
- It might be necessary to carry out an inspection and examination of monetary policy with a long-term view (Ueda)
- A long-term and comprehensive review of current easing is a possibility (Ueda)
- The shape of the yield curve is smoother than previously (Ueda)
- A small rate hike would not be a big issue for the financial system (Ueda)
- Interest rates cannot be drastically increased in Japan due to its current circumstances (Ueda)
- Negative interest rates provide the basis for current monetary stimulus
- Appropriate to continue negative interest rates for now
We can see the first signs of a potential change in the direction of monetary policy, although at the same time, the BoJ wants to maintain a fairly loose monetary policy and probably maintain negative interest rates, at least for now. At the same time, Ueda suggests that in the future the monetary policy will become less accommodative which may come at the shape of a change of yield curve control program or even the end of this program. Yen is not reacting to these remarks. However, USDJPY is lower than in the Asian session.
Source: xStation5
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