BOJ’s Ueda: Don’t Panic, We’ve Got This! 🙅‍♂️

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What to know:

  • BOJ’s Ueda, the great soother of nerves, stresses the need to support the economy with an accommodative monetary environment. Because, you know, the economy is like a fragile flower that needs constant nurturing 🌼.
  • The slightly dovish take may soothe the market’s nerves about Yen-led risk-off. Ah, the markets, always so dramatic and prone to hysterics 🤣.

Bank of Japan (BOJ) Governor Kazuo Ueda, the wise and venerable leader, said Friday that the central bank must maintain an accommodative monetary policy to support economic growth and ensure the underlying inflation gradually moves to the 2% target. Because, you see, 2% is the magic number that will bring us all prosperity and happiness 🎉.

Ueda told the Parliament that the recent increase in the consumer price index above the 2% target has been led by cost-push factors such as elevated food and fuel prices that will likely dissipate. Ah, yes, those pesky cost-push factors, always causing trouble and mayhem 🤪.

The comments come a week after the bank raised the benchmark borrowing cost to 0.5%, the highest in over 16 years, and could assuage fears of a yen-led risk-off in global markets, including cryptocurrencies, as observed in August. Because, you know, the markets are always looking for a reason to panic and run around like headless chickens 🐓.

The governor, however, maintained that rate hikes will continue if the economy evolves as expected. Ah, yes, the economy, that great and mysterious beast that must be constantly prodded and poked to see what it will do next 🐲. According to ForexLive, traders see the next BOJ rate hike in July. Because, you know, traders are always right and never wrong 🙄.

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2025-01-31 10:55