BOJ AI
  • Major issue is where to stop raising rates when getting closer to neutral rate
  • But Japan is definitely far below the uncertain levels of neutral rate now
  • Economic indicators to be watched include wages, inflation, service prices, GDP output gap
  • Hard to comment on FX impact of stronger yen on economy, prices
  • The impact of a stronger yen compared to a weaker yen is an "interesting matter"

There was a bit of a mistranslation there earlier with the initial headline reading:

*BOJ GOV UEDA: DON'T HAVE 0.5% POLICY RATE IN MIND

This has since been corrected to:

*BOJ GOV UEDA: DON'T HAVE 0.5% POLICY RATE IN MIND AS A CEILING

It's a minor change but a consequential one with a very different meaning. USD/JPY fell as a result from around 152.60 to 152.10 before keeping around 152.30 levels currently - down 0.3% on the day.

From Reuters:

BOJ Reuters