BOJ governor Ueda: Will guide policy appropriately to sustainably achieve price target

• Japanese economy is recovering moderately, albeit with some weakness
• If trend inflation heightens, will likely adjust degree of monetary accommodation
• The risks regarding price outlook are high, both to the upside and downside
• If inflation overshoots forecast, will be appropriate to adjust rates somewhat sooner
• If inflation undershoots forecast, would require us to maintain current policy stance for longer
• But if there are big downside shocks to the economy and prices, we will respond as needed without ruling out any means including various unconventional measures
• Will adjust daily bond buying amount by taking into account market developments
• For now, will keep buying JGBs at roughly the same amount, pace

Some lengthy comments there by Ueda but nothing that really stands out. He mentions that there is a chance that inflation could overshoot expectations but at the same time, reaffirms that risks to the outlook are still on both sides. The recent trend in prices isn’t calling for much urgency to raise rates. And that is where we are at now with the BOJ after the policy pivot in March.

USD/JPY is still up 0.5% on the day to near 155.40 currently, as dip buyers are keeping the faith in trading this week.

This article was written by Justin Low at www.forexlive.com.