BOJ Governor Ueda Sees No Rush to Unwind Ultra-Loose Policy

Despite inflation exceeding its 2% target, Ueda remains unconvinced of sustainable achievement; board members suggest waiting for spring wage negotiations.

• Bank of Japan Governor Kazuo Ueda indicates no rush to unwind ultra-loose monetary policy, citing small risk of inflation running well above 2%.
• Ueda suggests that the BOJ could gain significant information from the bank's regional branch managers' meeting in mid-January, potentially influencing policy decisions.
• Despite inflation exceeding its 2% target for over a year, Ueda is not convinced that Japan can foresee inflation sustainably achieving the BOJ's 2% target.
• Several BOJ board members see no rush to end the negative rate policy, suggesting a decision could be made after developments in labor-management wage negotiations next spring.
• Some BOJ policymakers call for a deeper debate on a future exit from massive stimulus, citing the increasing likelihood that Japan would achieve the bank's 2% inflation target in a sustainable manner.

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