BOJ governor Ueda: Will keep adjusting degree of easing if price outlook is realised

• Japan economy is recovering moderately, although some weakness is seen
• Global financial markets have been stable as a whole
• Must pay attention to financial, FX markets and their impact on Japan’s economy, prices
• The board has judged that spring wage negotiations will result in strong hikes again this year
• Growing number of firms expressed intentions to continue raising wages steadily
• Real interest rates remain significantly negative
• Easy monetary conditions will keep supporting the economy as such
• Timing and scope of further rate hikes will depend on economy, financial, and price conditions

He’s not playing this as a hike and pause sort of thing. Instead, he’s coming to this with providing justification for the rate hike today and reaffirming that they are on the right path. That as he puts a strong emphasis that the spring wage negotiations will support their case of tightening policy again for this year.

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