The impact of currency volatility on inflation in Japan has increased than in the past

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

Additional quotes

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

The trend in inflation, which is still likely to be below 2%, may gradually accelerate.

The outlook for overseas economies, including the US economy, remains uncertain.

Uncertainty around Japan’s economy, prices remain high.

You need to be alert to market impact, currency movements and their effect on Japan’s economy, prices.

It will guide monetary policy appropriately from the point of view of sustainable and stable achievement of the 2% inflation target.

Markets remain volatile.

We need to carefully consider the impact of the volatile market on Japan’s economic and price outlook, our view of risks and the likelihood of meeting our forecast.

They must examine market movements with a high sense of urgency for now.

Market reaction

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