Bank of Japan Governor Kazuo Ueda and his deputy doubled down on the central bank’s message that stimulus is still needed, in comments that helped nudge the yen to a fresh year-to-date low and spark a warning on currency movements from Prime Minister Fumio Kishida.
Following on from the BOJ’s decision Friday to leave all its ultra-easy policy settings untouched, Ueda and Deputy Governor Shinichi Uchida used separate appearances Monday to drive home the message that the economic recovery and price trends are too precarious to mull an imminent pivot.
Uncertainties around pay and inflation are high, and therefore the goal of achieving 2% inflation accompanied by wages gains hasn’t yet “come in sight,” Ueda told business leaders in Osaka. Uchida also cited “extremely high” uncertainties in making the case to stay patient at an event in Tokyo.
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