Business / Economy Jul 25, 2023
BOJ set to stick with easing as markets see clock ticking on yield control
Since taking the helm in April, Gov. Kazuo Ueda has repeatedly pushed back against the idea that a major pivot on policy is looming.
Since taking the helm in April, Gov. Kazuo Ueda has repeatedly pushed back against the idea that a major pivot on policy is looming.
Consumer prices excluding fresh food and energy costs have seen price gains hovering close to a high of more than four decades.
Hideo Hayakawa, who is also a former BOJ chief economist, said that the central bank must raise its inflation outlook for this fiscal year to match reality.
At least some market players think the BOJ may choose to reshape its policy of holding down 10-year yields, to help boost an economy already showing signs of improved price and wage trends.
Consumer prices excluding fresh food increased 3.2% in the capital from a year earlier, rising at a slightly faster pace than last month’s revised figures.
Ueda has repeatedly stressed the high cost of premature tightening as green shoots finally emerge to generate sustainable inflation.
An extended period of weakness could counterintuitively lay the ground for long-run strength should it help the BOJ boost growth and finally pivot from supereasy monetary policy.
Masato Kanda has become just the fourth official in the past three decades to serve a third year as vice finance minister for international affairs, Finance Ministry documents show.
Goldman cited a weaker yen and oil prices as major reasons for its revision.
Gov. Kazuo Ueda has repeatedly signaled his intention to take time before making any major changes to the central bank’s stimulus.