MNI BRIEF: BOJ Officials Shift Focus to Ueda Remarks

Bank of Japan officials will focus on whether the new governor and deputy governors change their view on the outlook for monetary policy at a joint press conference expected Monday, MNI understands.

Kazuo Ueda, the BOJ’s new governor, and deputy governors did not make statements at recent confirmation hearings, which deviated from former Governor Haruhiko Kuroda’s practice.

Ueda and the deputy governors, however, could elaborate on their outlook after the government formally appoints them. But Ueda will likely not deviate much on monetary policy.

Ueda and the two deputy governors have stated in the past that the BOJ must maintain eased policy settings to support wage growth to achieve the 2% price target in a stable and sustainable manner.

The new governor has also dampened market speculation of an immediate scrap to yield curve control, but has kept alive hopes of future changes or a complete abandonment. If Ueda repeats these remarks, they will weaken or remove speculation the central bank will tweak or adjust YCC at the April 27-28 policy meeting.

Ueda also has said monetary policy should be managed based on the current situation and the outlook for prices and the economy. He also emphasized the importance of carefully and politely communicating with market players.