- Japan’s economy is recovering moderately, albeit with some weakness
- Economic growth likely to be slow but continue at a moderate pace of recovery
- Financial conditions remain accommodative even after recent rate hike
- So, that will continue to support economic activity
- Expects to continue raising interest rates as underlying inflation approaches 2% level
- There is risk of underlying inflation overshooting 2% even
- The timing, pace of future rate hikes will be decided by scrutinising baseline forecasts and the risks involved
Ueda is on a bit of hiatus for medical reasons and these are his first remarks since then. As a reminder, he was not a voter nor did he participate in the latest BOJ policy meeting this month. That being said, his policy views are very much shared by the entire board so it wasn’t a deal breaker or anything.
The comments here are in line with what the BOJ has been communicating. So, there really isn’t anything that stands out. Carry on as you will.
