Ueda’s Dovish Stance Looks Unsustainable as Price Pressures Bite

A dovish stance from new Bank of Japan Governor Kazuo Ueda at his inaugural press conference is likely to be short lived, according to strategists.

A steady-as-she-goes series of comments on measures from yield-curve control to negative interest rates sent the yen sliding as Ueda hinted any significant policy tweak may be unlikely for the time being. But market participants still see a policy shift as inevitable in the face of rising inflation and will closely watch the language at this month’s policy meeting before making any changes to positions.