- No change to BOJ stance of patiently maintaining easy policy
- Will not hesitate to take additional easing steps if needed
- Will maintain stimulus measures with yield curve control
- The cost of shifting policy prematurely is extremely high
- The downside of waiting to ensure inflation hits 2% sustainably is smaller than shifting policy prematurely
This just bolsters their current stance since the latest BOJ meeting. When Ueda took over, the shunto wage negotiations were seen as a springboard for a potential shift in policy narrative for the Japanese central bank. However, that hasn’t yet materialised and it has knocked the wind out of the sails of yen bulls for now.