The report says that the BOJ is to continue a gradual exit from its ultra-loose monetary policy and may look to step up its plans some time next year. The sources say that Ueda is trying to stick to a pattern that he has established in his first six months as governor of the central bank. One said that:
“Given uncertainty over the economic outlook, the BOJ probably wants to wait at least until spring next year in normalising policy. If so, it makes sense to keep the current guidance dovish.”
Adding to that, the sources mention that many BOJ policymakers are also waiting on clarity on whether the annual spring wage negotiations next year will lead to any strong pay hikes.
“There’s a lot of hurdles to clear before an exit, which means you don’t want to get markets too excited about the chance of any early lift-off.”
Obligatory Ueda meme:
