BOJ Governor Ueda says concerns over US economy slowdown behind recent market rout

Hawkish headline comment from Bank of Japan Governor Ueda

• concerns about slowing US economy caused recent market rout
• closely watching market moves with a sense of urgency as uncertainties remain
• domestic and overseas markets remain unstable
• decided to raise rates in July due to risk of price overshoot driven by import costs
• economy is moving in line with price target protections
• important to communicate with the public on BOJ’s thinking
• The Bank of Japan July rate hike decision was based on our inflation forecast and the risk of an inflation overshoot

More, this from a senior BoJ official:

• Japan’s real interest rate remain deeply in negative territory, so
  accommodative monetary condition is maintained
• Need to take time
  to decide with what to do with ETF held by BOJ
• Not thinking
  about getting rid of ETF immediately

more to come

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