BOJ governor Ueda says does not have 0.50% policy rate in mind as a ceiling

• Major issue is where to stop raising rates when getting closer to neutral rate
• But Japan is definitely far below the uncertain levels of neutral rate now
• Economic indicators to be watched include wages, inflation, service prices, GDP output gap
• Hard to comment on FX impact of stronger yen on economy, prices
• The impact of a stronger yen compared to a weaker yen is an “interesting matter”

There was a bit of a mistranslation there earlier with the initial headline reading:

*BOJ GOV UEDA: DON’T HAVE 0.5% POLICY RATE IN MIND

This has since been corrected to:

*BOJ GOV UEDA: DON’T HAVE 0.5% POLICY RATE IN MIND AS A CEILING

It’s a minor change but a consequential one with a very different meaning. USD/JPY fell as a result from around 152.60 to 152.10 before keeping around 152.30 levels currently – down 0.3% on the day.

From Reuters:

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