- Recent inflation driven mostly by cost-push factors
- Cost-push factors likely to dissipate in the middle to late this year
- BOJ to maintain accommodative policy to support price trend
- Mindful that FX moves have various effects on the economy
- But we do not conduct monetary policy targeting FX
Well, he doesn’t sound like he’s in that much of a hurry to keep hiking rates. But we’ll see. Things can change quickly as seen with the shift in narrative from his December remarks to the rate hike in January. USD/JPY is up 0.3% to 154.80 levels now.
This article was written by Justin Low at www.forexlive.com.
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