BOJ governor Ueda comments on phrasing of needing time to scrutinise market risks

He says that back in August, they used the phrase of “we can afford some time” in scrutinising market risks because of the volatility back then. And he mentions that now, “we do not have to use that phrase today” i.e. a reason to pause. However, he does note that they aren’t at a stage where they feel completely at ease as well.

Ueda goes on to mention that the market volatility in early August was more to do with soft US economic data. And that they are seeing improvements in the data since then, so any spillovers to Japan are more limited. Right. Is he conveniently forgetting about their July rate hike?

USD/JPY is marked sharply lower and I can only point to the comments here as a plausible reason. The pair was hovering around 152.80 when Ueda first spoke but is now down to 152.10 on the day.

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