Bank of Japan Governor Ueda says FX moves could effect the Bank’s forecasts

Bank of Japan Governor Ueda still speaking in parliament. More specifically on the yen now:

FX rates could affect economy through various routes

FX moves affect
economy through various channels

FX moves at times
could affect economy, as well as risks to economic forecast

FX moves could
affect BOJ’s median forecast

BOJ hiked rates in
July as economy, prices were moving in line with forecast, and there
were upside risks to inflation due to rising import costs from weak
yen

FX volatility could affect our median forecasts, in which case we
will decide what would be appropriate policy response to such change
in forecasts

FX volatility could also create upside, downside risks to our
forecasts, in which case we will scrutinise degree of risk to
determine whether policy response needed

USD/JPY update, its been dropping on all the remarks from ueda so far today:

• BOJ Governor Ueda says concerns over US economy slowdown behind recent market rout
• BoJ Ueda will adjust monetary easing if our economy price outlook is likely to be achieved

• Bank of Japan Governor Ueda says BOJ’s policy steps were appropriate
• Japan fin min Suzuki says intervention action taken as excess volatility not desirable

• Bank of Japan Governor Ueda says the monetary policy path remains highly uncertain

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