Central Banks
Ueda Warns Against Magic Solutions, Sticks Largely to BOJ Script
- Ueda backs easing for now as more time needed for price goal
- To normalize policy, stop massive bond buys once goal reached
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Bank of Japan Governor nominee Kazuo Ueda warned against any magical solution to produce stable inflation and normalize policy as he largely stuck to the existing central bank script in the first parliamentary hearing to approve his appointment.
During a session that lasted almost three hours, Ueda said the BOJ should continue with stimulus for now, while flagging the need to consider returning to a normal policy approach if the outlook for prices clearly improved.