Ueda's Caution Risks Undermining BOJ's Policy Logic

Reported about 22 hours ago

Bank of Japan Governor Kazuo Ueda's cautious approach to monetary policy, amid a weakened yen, could jeopardize the credibility of his normalization strategy. As the yen slips to a five-month low, Ueda's reluctance to raise interest rates despite encouraging economic indicators raises concerns among economists. Many analysts expected a rate hike following recent trends, yet Ueda signaled a possible postponement, which could compel him to act primarily to defend the yen rather than based on economic data, creating discord with his policy objectives.

Source: YAHOO

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