Bank of Japan Governor Ueda (Headlines via Reuters):
- If price risks overshoot our expectations, we will take stronger steps to adjust degree of monetary support
- Japan’s economy is in state of inflation, when judging from recent movements in CPI
- In judging whether underlying inflation hits 2%, one factor we are looking at is whether recent signs of wage growth continue
- Key factor is whether wage hikes of around 3% are sustained, whether solid outcome so far in this year’s wage talks broadens
- We are also looking at whether wage gains will push up services prices, heighten medium- and long-term inflation expectations
- At our March policy meeting, we saw wage hikes broaden and move in line with our projections made in January
- Wage hikes broadening, but want to scrutinise outcome of wage talks among smaller firms
- If wage hikes continue and improve household income, that is likely to underpin moderate uptrend in consumption
- Must be vigilant to how overseas uncertainties affect consumer confidence
- We are watching FX moves carefully, especially their impact on economy and price developments
- Won't comment on FX levels
Earlier:
