MNI BRIEF: BOJ To Adjust Policy, But Uncertainty High - Ueda

The BOJ will adjust the degree of easy policy if economic activity and prices move in line with the bank’s forecast, according to a speech by Bank of Japan Governor Kazuo Ueda on Friday.

However, there are both upside and downside high uncertainties over the economy and prices, and the BOJ must pay careful attention to developments of financial and forex moves, and their impact, Ueda told reporters at the general meeting of the National Association of Shinkin Banks.

Shinichi Uchida, deputy governor, read the speech on behalf of Ueda.

Ueda repeated his previous remarks on the reduction of JGB buying, noting the scale will be a sizable amount without elaborating. (See MNI BOJ WATCH: Cuts To Bond Buys Detailed In July, Hike Eyed)

Ueda also called on financial institutions to implement lending and investment in securities appropriately and urged them to further strengthen risk management.