BoJ Gov Nominee Ueda: Possible to push up prices, wages with monetary easing
Bank of Japan (BoJ) Governor designate Kazuo Ueda is shedding more light on the monetary policy during his appearance on Monday.
Key quotes
Possible to push up prices, wages with monetary easing.
Trend inflation must heighten sharply for boj to shift to monetary tightening.
It’s not as if I have no ideas on how to tweak policy in future, but what exactly the BoJ will do will change depending on future economic developments.
Interest rates remain low under current monetary easing, helping corporate investment.
Monetary policy alone cannot raise prices immediately .
Inflation is not determined by monetary policy alone.
If external shock is big and prolonged, big monetary easing may not necessarily lead to price rises.
BoJ-govt joint statement’s mention of need for govt to sustain market trust in long-term finances is important.
BoJ has purchased JGBs as part of efforts to achieve 2% inflation target.