BoJ's Ueda: Japan's economy recovering moderately

The Bank of Japan (BoJ) Governor Kazuo Ueda said on Monday that the Japanese economy is recovering moderately despite weak signs.

Key quotes

Japan's economy recovering moderately despite weak signs.

Will increase interest rates upon realization of strong economic outlook.

To increasingly raise policy rate to adjust monetary support in line with economic and price forecasts.

Monitoring effects of various risks on economic outlook.

Sees moderate increase in private consumption trend.

Maintains stance to support economic activity.

Sees rise in income in both corporate and household sectors.

Gradually adjusting monetary support will help achieve price target through sustained economic growth.

Must monitor various risks, including US economy.

Increase in spending is gradually intensifying virtuous cycle.

To monitor wage negotiations in the future.

Sees executives of large firms announce commitment to sustained wage growth.

Firms should pass on higher labor costs through price hikes.

Gradual adjustment to easing to aid inflation goal.

Long-term inflation expectations embedded among households and firms.

Supports firm monetary policy to boost the economy.

Projects strengthening inflationary pressure from wage increases.

High uncertainty over future growth pace in China.

Market reaction to the BoJ's Ueda speech

At the time of writing, USD/JPY is trading 0.46% higher on the day to trade at 155.01.