BOJ governor Ueda says will adjust degree of monetary easing if underlying inflation rises

Easy financial conditions will be maintained for the time beingMonetary policy conduct from now on will depend on state of economy, prices at the timeWill not judge policy based on one single indicatorEconomy outlook, risk overshoot may also be a reason for policy changeJapanese economy has recovered moderately but some weakness is still seenMust pay attention to financial, FX market moves and their impact on economy, pricesMonetary policy not aimed to control exchange rate directly

Nothing out of the ordinary from Ueda just yet. He’s stressing on data dependency for the most part. Besides that, he is trying to reaffirm that they still have their options to raise rates further if need be. That despite recent inflation data not really working in their favour.

This article was written by Justin Low at www.forexlive.com.