BOJ governor Ueda: Recent data confirms economy is moving in line with our outlook

• We raised assessment on private consumption as wages are growing
• Recent data suggests we may be able to raise outlook on underlying inflation
• However, overseas trends raise uncertainties on that
• But there is no change to our thinking that will keep raising rates if economy moves in line with outlook
• Not yet able to narrow down Japan’s estimated neutral interest rate
• Will take next policy step if there is enough evidence that economy fits with outlook

The overall language is not much changed from before, reaffirming that they are still considering to tighten policy again but only if the conditions are right for that. USD/JPY is now keeping flat on the day around 142.70 as the back and forth action continues.

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