As expected, BoJ Governor Kazuo Ueda’s comments did not provide any strong signal for immediate rate hikes. He repeated that the path and pace of future rate hikes depend on economic conditions. He also acknowledged that market rates rose very rapidly, but partly attributed it to the end of fiscal year factor. <\/p>\n
Instead, he highlighted that the BoJ is monitoring bank lending and financial conditions, which remain accommodative after the December hike in its own assessment. He mentioned the possibility of conducting bond market operations in extraordinary conditions to encourage stable yield formation, but it sounded to us that he would like to keep a distance from committing to actual adjustment in operations. We interpret his remarks to mean the BoJ’s main focus is on financial conditions, not necessarily long-end tenor yields. <\/p>\n
He refrained from commenting on JPY, instead, he spent ample time explaining the inflation outlook and possible FX impact. The BoJ expects headline inflation to fall below 2% but underlying inflation to keep slowly accelerating. The BoJ’s focus is on underlying inflation, not headline. Board members have different views on underlying inflation, but on average, the board sees some distance still to 2%. Also, April price behaviour is a factor in considering rate hikes. <\/p>\n","protected":false},"excerpt":{"rendered":"As expected, BoJ Governor Kazuo Ueda’s comments did not provide any strong signal for immediate rate hikes. He…\n","protected":false},"author":2,"featured_media":256917,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":{"0":"post-256916","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-il","11":"tag-israel"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/256916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=256916"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/256916\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/256917"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=256916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=256916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=256916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}