BoJ’s Ueda: Focus on positive wage-inflation cycle kicking off for gauging stable achievement of price target

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Bank of Japan (BoJ) Governor Kazuo Ueda is making a scheduled appearance, addressing the Japanese Parliament – the Diet on Tuesday.

Key quotes

Japan’s economy recovering moderately, although some weak data are seen.

Consumption is improving moderately on easing cost-push pressure, hopes for higher wages.

Some firms appear to be delaying investment though capital expenditure plans remain firm.

We have seen various data since January, more data will come out this week so will look at these comprehensively in reaching appropriate monetary policy decision.

We are focusing on whether positive wage-inflation cycle kicking off, in judging whether sustained, stable achievement of our price target coming into sight.

Market reaction

USD/JPY picked up fresh bids on the above comments, spiking to near 147.40 before retracing quickly to 147.25, where it now wavers. The pair is up 0.23% on the day.