BOJ deputy governor Uchida says will continue to raise policy rate if conditions align
- Further rate hikes will depend on economic activity, prices and financial conditions
- There is risk of underlying inflation deviating upwards to the level above the price target
- Important for underlying inflation to stabilise around 2% level
- Uncertainties remain with regards to situation in the Middle East
- Need to pay close attention to how said developments will affect economy, prices
- Pace of any future tightening will also depend on Middle East developments
- Need to examine likelihood of realising baseline scenario in considering timing, pace of future rate hikes
More to come..
This article was written by Justin Low at investinglive.com.