MNI BRIEF: BOJ Nominee Ueda Says Inflation Trend Key To Review

Bank of Japan governor nominee Kazuo Ueda said a big improvement in the underlying price trend is necessary for the BOJ to review monetary policy or move towards a tightening of policy.

When asked about how to review monetary policy, Ueda said that it’s not that “I’m not considering them.” But he refrained from commenting on concrete options as they would be dependent on future economic and price moves.

Ueda also said favorable effects of the easy policy are exceeding those of side-effects.

“Communication with market players is very important but it is inevitable that there will be surprise as the bank decides on policy based on new economic data meeting by meeting, so we will make utmost efforts to courteously explain our thinking,” Ueda told lawmakers.

Ueda also said he sees no immediate change to a joint statement between the government and the BOJ, including the achievement of 2% price target at the possible earliest timing, made in 2013.

“Whoever takes office, the person will face very difficult and severe conditions. I like the challenge of the conditions based on my background as a scholar and former bank official,” Ueda said.,” Ueda said.