BoJ’s Sato: De-escalation of Middle East conflict is welcome move, uncertainty remains
Japanese Prime Minister (PM) Sanae Takaichi's administration newly appointed Bank of Japan (BoJ) board member, Ayano Sato, said in his scheduled press conference during the European trading session on Tuesday that the de-escalation of the Middle East conflict is welcome news for the economy, but uncertainty surrounding the economic outlook remains intact.
Additional remarks
Will scrutinise impact of middle east developments on Japan's economy, prices.
Firms more actively raising wages, prices so impact of weak Yen on inflation may be bigger than in past.
Weak yen gives boost to exports but pushes up import prices, leading to lower real household income.
Important for fiscal, monetary policies to each play their roles.
Monetary policy should focus on inflation, while fiscal policy should focus on addressing impact on households, firms.
Won't comment on specific FX levels.
Short-term, volatile FX moves undesirable.
FX moves should be determined reflecting fundamentals.
Need to watch both downside risks to growth and upside risks to inflation,
Important to scrutinise whether recent inflation is temporary, cost-driven price rises or more sustained, demand-driven inflation.
Market reaction
No immediate reaction is seen in the Japanese Yen (JPY) after the introductory speech by BoJ's Sato. At press time, USD/JPY trades 0.22% higher to near 162.30.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Glassnode reports $14.2 billion stablecoin drop, $1.6 billion Bitcoin ETF outflow
CoreWeave's surge gives AI cloud a breather, now all eyes are on the Anthropic IPO and Nvidia
CoreWeave’s Q3 revenue and guidance both exceeded expectations, with its stock price surging 25% in a single day and the new cloud sector soaring over 12%. Reports of Anthropic’s potential $1.5 trillion IPO valuation, OpenAI’s quarterly revenue surpassing $10 billion for the first time, and these three positive catalysts together have boosted confidence in the AI computing power industry chain, which was previously troubled by doubts about AI returns. Next week’s Nvidia earnings report and Anthropic’s IPO will be the true test of whether this rally can continue.
AI Computing Power and Semiconductors Stage a Strong Rebound—Why Is Wall Street Cautious About U.S. Stocks? Key Indicators Reveal the Bottom Hasn't Been Reached
The sharp volatility in the US stock market has prompted investors to carefully analyze various data to determine whether the sell-off has ended. Early indicators suggest that it may be too soon to declare that the market has resumed its normal upward trajectory.
Nvidia (NVDA.US) Governance Crisis Escalates: Jensen Huang Exposed for Another Affair, Board Considers Dismissal, and Wall Street Begins Pricing in a “No Jensen” Scenario
The world's most valuable semiconductor company is experiencing the most severe corporate governance crisis since its establishment.
Crypto prices
More
