MNI BRIEF: BOJ Wary Of Premature Tightening During Review-Ueda

The Bank of Japan will take a meeting-by-meeting approach to any potential tightening before the conclusion of its just-announced review of monetary policy, Governor Kazuo Ueda said on Friday, but he added that it will take time to achieve its 2% inflation target even though underlying price trends are likely to strengthen toward the end of a projection period.

“Monetary policy will be decided at each policy decision meeting, and the BOJ will manage monetary policy in a flexible manner, depending on developments of economic and price conditions,” Ueda said.

“It is likely that core CPI will fall below 2%, but its trajectory thereafter is very uncertain.”

Ueda said he had no preconceptions ahead of the policy review, which will include consultations with outside academic experts, and that the BOJ could announce initial results before it is concluded.