Bank of Japan Governor Ueda says the BoJ will not directly target FX in guiding monetary policy
If the BOJ did directly target the yen with policy they'd be running afoul of all sorts of agreements Japan has with the G7.
- May end YCC when stable and sustainable achievement of 2% inflation target is foreseen
- Don't have a clear image in mind yet on how to tweak YCC
- Don't expect a positive wage cycle to emerge when consumption, capex are sluggish
When asked about trigger for ending YCC, negative rate Ueda said must make comprehensive judgment on various factors including outlook for demand. Cannopt pre-set the timing of policy change.
Earlier from Ueda:
- Bank of Japan Governor Ueda says important for FX to move stably reflecting fundamentals
- More from Bank of Japan Governor Ueda: Aware of the impact of weak yen on firm earnings
- Bank of Japan Governor Ueda speech, full text. Patiently maintaining monetary easing.
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