BoJ’s Ueda: Wage–price mechanism likely to be sustained
Bank of Japan (BoJ) Governor Kazuo Ueda said on Thursday that the wage-price mechanism is likely to be sustained. Ueda emphasized that the central bank expected to continue raising interest rates if the economy and prices move in line with the forecast.
Key quotes
Mechanism under which wages and prices rise moderately along likely to be sustained.
Bank of Japan expected to continue raising interest rates if economy and prices move in line with forecast.
Adjusting degree of monetary support will allow us to smoothly achieve our price target and lead to sustained growth.
Normalisation framed as smoothing achievement of inflation target.
Market reaction
As of writing, the USD/JPY pair is down 0.05% on the day at 158.52.
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