Deputy Governor - Tightening Cycle Won't Be Aggressive

Deputy Governor Uchida's speech is underway in Japan. Headlines that crossed haven't shed much light on the March versus April timing around an end to NIRP policy in Japan.

• The Deputy Governor has also stated that even with an end to negative rates, Japan financial conditions will remain very accommodative. The path for rate hikes won't be aggressive either (Uchida stated it is difficult to see an outlook where there is continuous rate hikes). The rate path will also depend on underlying economic conditions.
• Other comments have been in line with recent official rhetoric that likelihood of sustainably achieving the inflation target is gradually heightening.
• USD/JPY firmed modestly as the headlines crossed, we were last 148.30/35 (still below earlier highs from this week). We were around 147.90/95 prior to the speech. JGB futures have also firmed, last 146.50, earlier lows were at 146.13.
• The press conference for Uchida is due later at 2:30pm local time.