BoJ’s Ueda says to expect underlying inflation to accelerate moderately

Bank of Japan (BoJ) Governor Kazuo Ueda said on Tuesday that he expects underlying inflation to accelerate moderately. Ueda added that he will guide monetary policy appropriately to stably achieve our inflation target accompanied by wage gains. 

Key quotes

Expect underlying inflation to accelerate moderately. 

Tight labour market, firms active wage, price-setting behaviour will maintain cycle in which wages and prices rise in tandem. 

Temporary freeze of food sales tax may briefly lower inflation but likely has limited impact on inflation expectations. 

Will guide monetary policy appropriately to stably achieve our inflation target accompanied by wage gains. 

Market reaction

As of writing, the USD/JPY pair is up 0.13% on the day at 158.65.