Bank of Japan (BoJ) board member Hajime Takata is back on the wires on Wednesday, expressing his take on inflation while refraining from commenting on the exchange rate value.
Key quotes
There’s still distance to achieve 2.0% inflation target.
Question remains on sustainability of inflation expectations.
No comment on FX levels.
Stronger than expected US economy impacting on currencies.
Uncertainty is high on price outlook.
Various hard data shows Chinese economy deviating downwardly.
There’s also upside risk to price outlook.
Overseas factors having greater impact on currencies.
We won’t evaluate currencies by focusing on certain levels.
We need to stand ready to flexibly respond to uncertainty.
What was taken in July was flexible response.
BoJ decision in July to make yield control more flexible was part of our risk management.
BoJ’s flexible response could include response to downside risks.
Making flexible operation of yield control is not a sole factor behind weak Yen.
There’s certain distance to ditching of negative rate policy.
Response to negative rate policy should be taken when economy faces upside risks.
Market reaction
USD/JPY was last seen trading at 147.35, down 0.25% on the day.
Source: https://www.fxstreet.com/news/bojs-takata-uncertainty-is-high-on-price-outlook-202309060519