MNI BRIEF: Prices Falling Slower Than Expected - BOJ's Ueda

Bank of Japan Governor Kazuo Ueda said Friday he will carefully analyse future price moves following the slower-than-expected y/y drop of core consumer prices in April.

He said prices were falling and they could decline further towards the middle of this fiscal year. "The BOJ is focused on whether price fall will catch up with the forecast and we will examine how prices evolve carefully ahead of the July meeting,” he noted at a press conference. BOJ board members will review the medium-term economic outlook and price moves at the July meeting.

Ueda expects wages to continue rising this year, despite concerns on wage-growth sustainability. The 2% price stability target will take time to achieve and the BOJ will carefully explain how it sees economic and price conditions, and their outlook in managing monetary policy, he added.

Ueda noted the impact of a weak yen varies depending on sectors and industries and the foreign-exchange rate should move stably and reflect economic fundamentals. On the Bank's review of monetary policy, Ueda said the BOJ will publish specific information on its website in July.