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MNI BRIEF:Ueda Says 2% Target Key To BOJ  Policy Normalisation

(MNI) Tokyo
(MNI) TOKYO

Bank of Japan governor nominee Kazuo Ueda said on Friday that the BOJ can move toward normalisation of easy policy if the 2% price target come into sight without elaborating when that would be.

Ueda told lawmakers that the rise in Japan’s inflation rate seemed to have peaked in January and that it will fall considerably.

“The BOJ should manage monetary policy based on the outlook for economy and prices as there is a time lag that monetary policy affects economy and prices,” Ueda said.

The BOJ should be focused on the underlying trend of price, although it isn’t easy to assess or judge the underlying price trend, he said.

Ueda said the BOJ needs to maintain an accommodative environment to support corporate capital investment aimed at boosting productivity.

He also said communication with market participants is important as BOJ monetary policy affects the economy broadly, adding that the BOJ works in close cooperation with other central bank.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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