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:
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app- 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
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
