Speaking at the post-policy meeting press conference on Friday, Bank of Japan (BoJ) Governor Kazuo Ueda said that the Bank “will analyze the impact of whether Yen’s strengthening since August will impact prices by the same degree as previous Yen weakness had on prices.”
The BoJ left the benchmark interest rate at 0.15%-0.25% following its September policy meeting.
Additional quotes
Today’s CPI data was slightly stronger than what we had forecast a short while ago.
There was evidence in today’s data that wage hikes are being reflected in service prices.
Closely looking at whether wage growth momentum will continue, service prices will continue to reflect wage growth, and consumption will remain strong in autumn and beyond.
Will analyse how the US economy will impact next wage negotiations next spring..
US economy soft landing is our main scenario.
But risk against the US soft landing is higher.
Our stance has been that we will not use monetary policy to control forex rates.
We do not react directly to forex rates but their impact on inflation outlook.
Want to take some time to see how heightened uncertainties affect our outlook in deciding next policy step.