BOJ's Ueda: Underlying inflation is still under 2%

<ul><li>We're monitoring the situation with the yen very carefully but it's the jurisdiction of the ministry of finance</li><li>Wage inflation is now running at around 2%</li><li>If you want a 2% inflation rate, you want wage inflation that's slightly or well-above 2% to match productivity growth, so there's still some ground to cover</li><li>Yen is being influenced by many factors, including the policy of these other central banks</li><li>If we become reasonably sure about the second part of inflation forecasts, that would be a good reason for reconsidering a policy change</li><li>Investment is fairly strong at the moment</li><li>We think the economy is going to expand at slightly-above potential for some time</li><li>We do talk but do policy independently</li><li>Demographics are working to tighten the labour market for quite a long while and that will continue</li><li>We haven't had any serious monetary policy tightening in decades</li><li>If we do get to normalize our normal monetary policy, then rates may go up by large margins and we will have to be careful and carry out all kinds of stress tests</li><li>It's the business of the diet to create sustainable finances</li><li>Wage growth is a good sign for us</li><li>We don't have a lot of confidence in our 2024 forecast</li></ul><p>The yen is the currency that could be a big mover on these comments if Ueda hints at an end to yield curve control.</p>

This article was written by Adam Button at www.forexlive.com.