Bank of Japan Governor Kazuo Ueda said late Wednesday that the BOJ remains committed to stimulating inflation expectations in Japan. Most of the world's major central banks have focused on cutting interest rates in the face of falling inflation after price increases outpaced incomes for longer than expected, but Japan has never seen the flames of rate hike inflation. He completed the entire race from last place to first place without any problems. After decades of stagnation in inflation indicators, prices are still struggling to start rising.
Main highlights
The Bank of Japan continues to maintain a fairly accommodative monetary stance.
The Bank of Japan wants to raise inflation expectations to a new level.
Japan's labor shortage is having a positive impact on wages.
Underlying inflation is rising moderately.
It will still take some time to reach 2% inflation in a sustainable manner.
When there is great uncertainty, you usually want to proceed cautiously and gradually.
The problem is that moving policy very slowly and creating expectations that interest rates will remain low for a very long time can lead to a huge accumulation of speculative positions.
We are watching very closely what is happening in the United States and Europe, as changes in monetary policy in other countries can have a significant impact on our economy and inflation.
It is very difficult to pinpoint the appropriate size of rate hikes from here.
