Bank of Japan (BoJ) Deputy Governor Shinichi Uchida stated on Friday that Japan’s economy is undergoing a moderate recovery, though some vulnerabilities persist.
Key Highlights:
Underlying inflation is gradually approaching the BoJ’s 2% target.
The central bank‘s holdings of Japanese government bonds (JGBs) continue to exert a strong monetary easing effect.
Uchida refrained from commenting on daily JGB yield fluctuations but emphasized that recent yield movements have not altered the BoJ’s stance on short-term policy rates or bond tapering.
JGB yields are influenced by market perceptions of economic conditions, inflation, and global developments.
The BoJ remains committed to price stability and does not intend to monetize government debt.
Market Reaction:
As of writing, the USD/JPY pair is up 0.07% on the day, trading at 149.78.
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