Bank of Japan Governor Ueda
- We are aware firms’ aggressive price-, wage-setting behaviour continuing
- Board’s downgrade in inflation forecasts reflect pressure on global growth from trade policy uncertainty, slowing pace of cost-push inflation and recent sharp falls in crude oil prices
- BOJ’s financial position won’t affect its short-term rate decision, which will focus on achieving price target
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Given the sticky, and rising, Tokyo area inflation Ueda and the Bank of Japan Board may have to reconsider thier downgraded inflation forecasts:
- Tokyo May 2025 headline CPI +3.4% y/y (3.4% expected)
- USD/JPY dips to 143.80 after solid Tokyo inflation data
