MNI BRIEF: BOJ's Ueda Says Markets Unstable, Vigilance Needed
MNI (TOKYO) - Bank of Japan Governor Kazuo Ueda said on Wednesday financial markets remain unstable, while uncertainties over overseas economies remained high, which will require the BOJ to monitor their developments with utmost vigilance.
“As the risk factor, the uncertainties over Japanese economy remain high, including the outlook for overseas economies, prices, resources prices and corporate price-setting behaviours,” Ueda said at the general meeting of the Japan Securities Dealers Association.
The BOJ must pay great attention to developments in financial and forex markets and their impact on Japan’s economy and prices, he added. “Compared with the past, forex moves tend to affect prices,” Ueda said.
The governor maintained his baseline view that underlying inflation is likely to continue rising and in the second half of the projection period through fiscal 2026 to be a level that is generally consistent with the price stability target of 2%.