In an interview with Japanese public broadcaster NHK on Wednesday, Bank of Japan (BoJ) Governor Kazuo Ueda said that the possibility of ending negative rates next year is “not zero,” per Reuters.
Key quotes
“Want to scrutinize next year’s wage outlook, whether wage rises will spread to inflation.”
“Even if smaller firms’ wage data not available, if their profits are very strong and raises hope of higher wages, that will be a big factor in deciding policy.”
“The chance of Japan returning to deflation in the near future is very low.”
“The risk of inflation accelerating well above 2% is not high, so we’re in no rush.”
Market reaction
The USD/JPY pair showed no immediate reaction to these comments and was last seen trading modestly higher on the day at around 142.60.
Source: https://www.fxstreet.com/news/bojs-ueda-possibility-of-ending-negative-interest-rates-next-year-is-not-zero-202312271148