BOJ Governor: committed to monetary easing due to slowing price growth

Bank of Japan Governor Kazuo Ueda revealed that price growth is still slower compared to the central bank’s inflation target, explaining why officials continue with the current monetary policy strategy, according to Bloomberg.

Ueda added on Saturday during a panel discussion at the annual symposium of the Federal Reserve in Jackson Hole, Wyoming: “we believe that core inflation is still slightly below our target of 2%. That is why we are committed to the current monetary easing framework”.

Ueda pointed out that annual inflation, as measured by consumer prices excluding fresh food, recorded 3.1% in July, and is expected to decline by the end of the year.

Referring to the economic growth achieved by Japan earlier this year, Ueda said that it was “to some extent the result of easing restrictions associated with the pandemic”. “We believe that the trend of domestic demand remains healthy, although this needs to be verified by the third quarter data,”he added.

Ueda did not comment on foreign exchange rates in his speech, which was part of a panel discussion on globalization