- Will closely scrutinise economy, price situation by examining wages and prices
- Main reasons for inflation outlook overshoot compared to July are longer-than-expected effects of price pass-through and rising oil prices
- But we are not in a situation to foresee sustainable and stable price increases
- Will not hesitate to take easing measures if necessary
The comment that he does not see inflation being sustained says it all. They won’t pivot right until the last minute but if markets continue to expect them to do so in the meantime, disappointment will surely come. My favourite Ueda meme: