Bank of Japan (BoJ) Governor Kazuo Ueda said on Thursday that the “underlying inflation is still somewhat below 2%.”
Additional takeaways
Expect underlying inflation to gradually accelerate as economy continues to recover.
The BoJ is gradually shrinking size of its balance sheet, like to spend time scrutinising what eventual, ideal size will be taking into account overseas examples.
Size of Japan’s monetary base, balance sheet somewhat too big now, which is why we are slowing bond buying.
Expect Japan’s real wages, consumption to gradually improve as rise in import costs seen moderating, wage growth expected to stay strong.
Market reaction
USD/JPY was last seen trading 0.03% higher on the day at 148.20.
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