BOJ's Ueda hints at action if yen's inflation impact persists
On Wednesday, Bank of Japan Governor Kazuo Ueda expressed that if the fluctuations in the value of the yen significantly affect inflation, the central bank might consider implementing monetary policy measures. This statement further emphasizes his concern about the potential negative consequences resulting from the recent substantial depreciation of the currency.
Ueda emphasized that should inflation trends accelerate towards the 2% target set last month, the central bank will "modify the level of monetary accommodation." This indicates the possibility of raising interest rates in the near future and implementing multiple rate hikes over the next few years. Ueda further stated that the BOJ will not necessarily wait for inflation to reach the target range of one-and-a-half to two years before considering rate increases.
Japanese Finance Minister Shunichi Suzuki expressed his determination to closely observe changes in currency rates with a high level of attentiveness. Suzuki emphasized his commitment to implementing all essential actions to safeguard the Japanese Yen (JPY) and prevent its depreciation.
Many market players expect the BOJ to raise interest rates again sometime this year, having ended negative interest rates and other remnants of its radical stimulus in March.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
If you like, reward to support.
Hot
No comment on record. Start new comment.