Bank of Japan Governor Ueda says Bank will cut back on buying JGBs “irrespective” of data

Bank of Japan Governor Kazuo Ueda spoke at a seminar hosted by the Peterson Institute for International Economics on Friday. ICYMI from Ueda:

• BOJ must maintain loose monetary policy for the time being as underlying inflation remains “somewhat below” its 2% target, and long-term inflation expectations are still near 1.5%
• BOJ will also begin to cut its purchases of Japanese government bonds (JGBs) (timing and extent of the reduction are yet to be determined)
• “Irrespective of what the data will say in the near future, we will like to find a way and timing to reduce the amount of JGB purchases”
• “If underlying inflation continues to go up, we will very likely be raising interest rates”

This article was written by Eamonn Sheridan at www.forexlive.com.