Bank of Japan Summary of Opinions from the December Monetary Policy meeting. Full text.

  • One member said must
    patiently maintain monetary easing
  • One member said must confirm
    sustainable, stable achievement of price target is foreseen in order
    to end negative rate, YCC
  • One member said must
    scrutinise wage, price moves under YCC given strong upward pressure
    on prices likely stabilised
  • One member said even if next
    spring’s wage hikes are considerably higher than expected, risk that
    this will cause underlying inflation to significantly exceed 2% is
    small
  • One member said we are not in
    situation where we would fall behind the curve in raising rates, even
    if we decided to wait after seeing wage talk outcomes next spring

I don’t want to read too much into all this ‘one member’ headline commentary. But, if I did then I’d be doubtful of any pivot from the Bank before April, perhaps even later.

USD/JPY is up a few ticks, circa 142.46 as I update, from142.35 or so just before the release.

Bank of Japan Governor Ueda spoke earlier this week, on 25 December:

From the day:

This article was written by Eamonn Sheridan at www.forexlive.com.



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