Central Banks
BOJ Ueda Strikes Cautious Tone Making Case for Steady Policy
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Bank of Japan Governor Kazuo Ueda stuck with his cautious stance on the outlook for inflation, reinforcing the message he delivered last week indicating an end to negative interest rates isn’t around the corner.
Uncertainties regarding the outlook for wage gains and inflation remain high, and therefore the BOJ believes its goal of achieving 2% inflation accompanied by wages gains “has not yet come in sight,” Ueda told business leaders in Osaka Monday. Speaking after the BOJ decided Friday to hold policy steady, Ueda noted it’s important to weigh both costs and benefits of any given policy.