BoJ’s Ueda: When achievement of 2% inflation in sight, we will seek exit from easy policy

Bank of Japan (BoJ) Governor Kazuo Ueda said in his parliamentary speech on Tuesday, “when achievement of 2% inflation stably and sustainably in sight, we will seek an exit from negative rates, YCC and other large scale monetary easing steps.”

Additional quotes

In what order we phase out various monetary easing tools will depend on economic, price, financial conditions at the time.

 It is possible to control short-term rates at appropriate level by paying interest on reserves parked with BoJ.

If inflation accelerates and warrants monetary tightening, it is possible to do so by raising rates without scaling back BoJ’s bond holdings.

There are various ways to push short-term rates to positive territory.

One way would be to apply positive interest to reserves parked with BoJ, which would push up overnight call rate slightly below that level.

Market reaction

USD/JPY is holding the latest uptick near 147.40, as the fresh comments from BoJ Governor Ueda offer little comfort to the Japanese Yen. The pair is up 0.33% on the day.

Japanese Yen price today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the Euro.

 
USD
EUR
GBP
CAD
AUD
JPY
NZD
CHF

USD
 
-0.05%
0.02%
-0.02%
0.02%
0.46%
-0.01%
0.00%

EUR
0.05%
 
0.05%
0.03%
0.06%
0.50%
0.02%
0.05%

GBP
-0.01%
-0.06%
 
-0.03%
0.02%
0.44%
-0.01%
-0.01%

CAD
0.02%
-0.03%
0.03%
 
0.04%
0.47%
0.00%
0.02%

AUD
-0.02%
-0.07%
-0.01%
-0.04%
 
0.42%
-0.04%
-0.02%

JPY
-0.47%
-0.50%
-0.45%
-0.48%
-0.43%
 
-0.46%
-0.45%

NZD
0.01%
-0.03%
0.01%
0.00%
0.04%
0.47%
 
0.02%

CHF
-0.01%
-0.03%
0.01%
-0.03%
0.02%
0.45%
-0.01%
 

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/bojs-ueda-when-achievement-of-2-inflation-in-sight-we-will-seek-exit-from-easy-policy-202403120436