Overview
- After their first bilateral meeting on Nov. 18, Governor Kazuo Ueda said the prime minister made no request on policy as he outlined a data-dependent, gradual approach toward the 2% inflation goal.
- Minutes from the Nov. 12 economic council show Ueda warned that keeping monetary settings too loose for too long carries risks to achieving the target stably.
- The yen has weakened to around 155 per dollar, prompting Finance Minister Satsuki Katayama to voice alarm over volatile moves and raising the likelihood of stepped-up verbal intervention.
- While markets still price a hike to 0.75% as soon as December or January, senior adviser Goushi Kataoka said a move before March is unlikely and called a January increase not highly likely.
- Officials discussed currency developments and coordination, and advisers flagged a supplementary budget of roughly ¥20 trillion to bolster demand before the BOJ decides its next step.