BOJ Gov. Ueda's Mixed Signals Preserve Policy Flexibility

Dow Jones
Sep 21

0426 GMT - Bank of Japan Gov. Kazuo Ueda appeared to deliberately mix hawkish and dovish remarks to maximize future policy flexibility at his press conference on Friday, Barclays economists say in a note. Their impression is that the BOJ doesn't appear to have a firm view on its timing for the next potential increase yet. Barclays expects the central bank to deliver additional increases in January and July next year to a terminal rate of 1.75%. After the terms of two hawkish board members expire in July 2027, Barclays believes Prime Minister Sanae Takaichi's administration is likely to appoint new dovish members, strengthening the BOJ's overall bias toward maintaining the status quo.

 

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