MNI BRIEF: Ueda Says BOJ Has Ample Time To Study Developments
MNI (TOKYO) - Bank of Japan Governor Kazuo Ueda on Tuesday repeated his dovish tone on additional rate hike, saying the BOJ has ample time to examine evolving overseas economies and unstable financial markets.
“The BOJ needs to monitor with utmost vigilance developments in overseas economies, particularly the U.S. economy, and those in financial and capital markets, which have remained unstable,” Ueda told business leaders in Osaka City.
However, he maintain his basic policy stance, saying “the BOJ considers that, if underlying inflation rises in line with its outlook, it will be appropriate to accordingly raise the policy interest rate and adjust the degree of monetary accommodation. Given the high uncertainties surrounding economic activity and prices, unexpected situations may occur.”
The Bank would conduct policy in a timely and appropriate manner while taking account of various uncertainties, rather than based on a fixed schedule set in advance, Ueda said, adding Japan’s economy must avoid returning to deflation.
The comments followed the BOJ board's decision to hold the policy rate unchanged at 0.25% last week. (See MNI BOJ WATCH: Ueda Says BOJ Has Time To Watch Price Moves)