BOJ Ueda: standard monetary policy to not immediately respond to supply-driven inflation - ForexLive

Ueda testimony before the lower house of the Diet as part of his nomination and confirmation process

More to come

• Need to guide monetary policy based on economy, prices and their outlook
• Takes certain time for effects of monetary policy to play out in economy
• Current monetary easing appropriate
• By supporting economy with monetary easing, boj must support corporate efforts to hike wages
• Will work closely with govt to guide policy appropriately
• Japan still needs more time for inflation to sustainably hit 2% target
• It is standard monetary policy to respond preemptively to demand-driven inflation but not immediately respond to supply-driven inflation
• Want to achieve price stability sustainably and stably
• Inflation to fall below 2% around the middle of the Next fiscal year

Japan's fiscal year begins April 1, so the middle is around October. Thus Ueda is expecting inflation to fall from October this year.

Re the points I have bolded above, this is what I was talking about earlier.

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2023-02-24 00:38:00Z
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