A former BOJ board member has criticized Governor Ueda's market messaging, as Japan’s business service prices remain steady at a three-decade high, fueling speculation of policy normalization. BOJ members, in a recent meeting summary, indicated the need to wait after seeing wage talk outcomes next spring before raising rates. Some called for a deeper debate on a future exit from ultra-loose monetary policy, and the potential timing of ending the negative rate policy was discussed, with no rush to act until a sustainable and stable achievement of the price target is confirmed. BGC is capitalizing on this speculation by making a big push into the yen interest-rate derivatives business, amid record volumes of transactions. Governor Ueda believes the risk of inflation accelerating well above 2% isn't high, and even if smaller firms' wage data isn't available, strong profits could be a big factor in deciding policy. He also suggested that some parts of the current framework might remain upon policy change, but a comprehensive review will be considered as the economy makes progress toward achieving the bank's price target.
🇯🇵 Some Bank of Japan policymakers called for deeper debate on a future exit from ultra-loose monetary policy as the economy makes progress toward achieving the bank's price target, a summary of opinions at this month's meeting showed on Wednesday. While the board agreed to… https://t.co/ujEtWrYfX2
BOJ'S GOVERNOR UEDA WHEN ASKED IF VARIOUS STEPS TAKEN NOW WILL BE OVERHAULED UPON POLICY CHANGE: WE MAY LEAVE SOME PART OF CURRENT FRAMEWORK INTACT BUT WILL LIKE TO LOOK AT ENTIRE MEASURES IN REACHING DECISION - NHK.
BOJ'S GOVERNOR UEDA: EVEN IF SMALLER FIRMS' WAGE DATA ISN'T AVAILABLE, IF THEIR PROFITS ARE VERY STRONG AND RAISES HOPE OF HIGHER WAGES, THAT WILL BE BIG FACTOR IN DECIDING POLICY - NHK.
🔴 BOJ'S GOVERNOR UEDA: THE RISK OF INFLATION ACCELERATING WELL ABOVE 2% ISN'T HIGH, SO WE'RE IN NO RUSH - NHK.
BGC is making a big push into the yen interest-rate derivatives business as speculation over Japan’s monetary policy fuels record volumes of transactions to hedge against potential changes in borrowing costs https://t.co/DaQJ82ltDl
🔴 BOJ SUMMARY: ONE MEMBER SAID THAT WE MUST CONFIRM A SUSTAINABLE AND STABLE ACHIEVEMENT OF THE PRICE TARGET IS FORESEEN IN ORDER TO END THE NEGATIVE RATE AND YCC.
Bank of Japan board members discussed the potential timing of ending the negative rate policy during their meeting last week, with several members indicating they see no rush to make the move https://t.co/hQnIUms48h
Some in BOJ called for debate on future exit from easy policy -Dec meeting summary https://t.co/1y7RkwrLBV https://t.co/Egbwnl2f7B
⚠️ SOME IN BOJ CALLED FOR DEBATE ON FUTURE EXIT FROM EASY POLICY -DEC MEETING SUMMARY Full Story → https://t.co/AbxihA3Sse https://t.co/qq7kKAppYw
BOJ SUMMARY: ONE MEMBER SAID WE ARE NOT IN SITUATION WHERE WE WOULD FALL BEHIND THE CURVE IN RAISING RATES, EVEN IF WE DECIDED TO WAIT AFTER SEEING WAGE TALK OUTCOMES NEXT SPRING
The rise in Japan’s business service prices held steady at a three-decade high, in a development likely to fuel speculation that BOJ will inch its way toward normalizing policy in coming months https://t.co/5MMbX1i8Ls
Ex-BOJ board member criticises governor Ueda's market messaging https://t.co/cKJq3WKPh1 https://t.co/VcUANgOLKv