TOKYO, Mar 01 (News On Japan) –
Bank of Japan Governor Kazuo Ueda, attending the G20 Finance Ministers and Central Bank Governors assembly, expressed warning about an early revision of the huge easing measures, stating that the two% inflation goal just isn’t but close by.
Bank of Japan Governor Ueda: “The question is whether we are in a situation where the sustainable and stable achievement of the price target can be foreseen. In my opinion, we have not yet reached that point.”
Governor Ueda indicated a cautious strategy to early revisions of huge easing measures, corresponding to lifting unfavourable rates of interest, emphasizing {that a} rise in wages confirmed throughout the spring labor negotiations is a vital level for reaching the inflation goal.
Following the assertion by BOJ board member Takata on February twenty ninth in Shiga Prefecture that “we are in a situation where the 2% inflation target can be achieved,” there was hypothesis available in the market that the huge easing measures can be revised early, resulting in a short lived appreciation of the yen to round 149 yen per dollar.
Governor Ueda’s remarks appeared to quell the hypothesis sparked by board member Takata’s assertion, and the yen trade price subsequently returned to round 150 yen per dollar.
Source: ANN