BOJ governor Ueda: Easy monetary conditions are in place as real rates remain negative

• US economy achieving soft landing is our main scenario
• If US economy achieves soft landing, negative impact on Japan economy would be small
• Japan interest rate is probably still lower than neutral rate despite rate hikes
• We don’t react directly to forex rates but their impact on inflation outlook
• We will not use monetary policy to control forex rates

The yen is falling further as he continues to speak with USD/JPY now driving up to 143.40 levels on the day. And that despite the dollar remaining somewhat sluggish elsewhere, though the changes there remain light. A key message from Ueda is also that “the current uncertainty won’t lead to a quick decision on hiking rates”.

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