BoJ’s Ueda: Cannot say decisively that a weak Yen is negative for Japan's economy
Bank of Japan (BoJ) Governor Kazuo Ueda, adding to his earlier comments, said that the central bank does not have any specific plan yet on how it will sell ETFs and that a weaker Japanese Yen (JPY) pushes up domestic inflation via a rise in import costs
Additional Quotes:
- If the achievement of our price target approaches, we can discuss strategy and guidelines on exiting ultra-loose policy including the fate of our ETF buying.
- When we sell ETFs we will do it in a way that avoids as much as possible causing market disruption, and huge losses on the BOJ's balance sheet.
- Cannot say decisively that a weak JPY is negative for Japan's economy.
- Weak JPY is positive for exports, and profits of globally operating Japanese firms.
Market Reaction:
Investors, so far, have reacted little to Ueda's comments, with the USD/JPY pair trading with a mild negative bias around the 150.60 area in the wake of the prevalent US Dollar (USD) selling bias.
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