Impact of FX volatility on Japan’s inflation has increased than in the past

“Impact of FX volatility on Japan’s inflation has increased than in the past,” Bank of Japan (BoJ) Governor Kazuo Ueda said on Wednesday.

Additional quotes

Japan’s economy recovering moderately albeit with some weak signs.

Trend inflation, which is likely still below 2%, likely to gradually accelerate.

Outlook for overseas economies, including the US economy, remains uncertain.

Uncertainty surrounding Japan’s economy, prices remain high.

Must be vigilant to impact of market, FX moves and their effect on Japan’s economy, prices.

Will guide monetary policy appropriately from standpoint of sustainably, stably achieving 2% inflation target.

Markets remain unstable.

Must scrutinize impact of unstable market on Japan’s economic and price outlook, our view on risks and likelihood of achieving our forecast.

Must scrutinize market moves with a high sense of urgency for time being.

Market reaction

At the time of writing, USD/JPY is adding 0.25% on the day to trade at 143.90.