Bank of Japan Governor Ueda says need to monitor FX

Bank of Japan Governor Ueda is speaking from parliament again today, answering questions:

• Low real rate supports economy and inflation
• Need to monitor FX and oil for real wages
• There is no clear evidence thay Japan’s natural rate of interest continued to fall from five years ago, when its estimated to have been around zero
• BJ can adjust degree of monetary accommodation via rate hikes if trend inflation accelerates gradually

Wage data from Japan today was not good:

• Japan data – Real wages down 2.5% y/y in March, down for 24 consecutive months

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