Bank of Japan Governor Kazuo Ueda reiterated his view that the bank needs to carefully watch various risks without signalling the likelihood of an interest rate hike next month.
“The timing and pace of adjusting the degree of monetary accommodation will depend on developments in economic activity and prices as well as financial conditions going forward,” Ueda said in a speech at a business conference in Tokyo on Wednesday.
“The bank needs to pay due attention to various risk factors at home and abroad, and to examine how these factors will affect the outlook and risks for Japan’s economic activity and prices and the likelihood of realising the outlook,” he said.
The speech comes after his dovish message last week surprised BOJ watchers, sending the yen down by sowing doubt in expectations that the central bank would raise rates in January if it didn’t act at its December meeting.
The yen weakened against the dollar following his comments.
The BOJ kept its benchmark interest rate at 0.25% at its December policy meeting. In Wednesday’s speech, Ueda said he has a lot to monitor by indicating he wants to see more data to gauge momentum in annual spring wage talks and the outlook for the US economy.
