BoJ Gov Nominee Ueda: Weak Yen benefits exports, inbound tourism and some service sectors

Bank of Japan (BoJ) Governor designate Kazuo Ueda is still testifying on his confirmation hearings before the Lower House of the Japanese parliament on Friday.

Key quotes

CPI rises as a whole having negative impact on consumers.

There's no ideal indicator to gauge trend inflation.

Stable prices are extremely important infrastructure for the economy.

Hesitant to add wages to BoJ’s policy mandate.

Monetary policy decision could be a surprise, but want to limit element of surprise as much as possible.

No comment on FX rates.

Weak Yen benefits exports, inbound tourism and some service sectors.

Weak Yen also has various negative impact such as hit to households from rising import costs.

Wage hikes, growth strategy help achieve virtuous economic cycle.

Market reaction

On his latest remarks, USD/JPY is holding its rebound at around 134.70, modestly flat on the day.