Bank of Japan Governor Ueda Kazuo said that the Bank of Japan is still some distance from its inflation target, and this statement has accelerated the weakening of the yen. Ueda downplayed the possibility of stimulating the economy by cutting interest rates, but mentioned that it may be necessary to support the economy, or leave the impression that the central bank's next move to raise interest rates will be even more distant. When Ueda began appearing in parliament today, the exchange rate of the yen against the US dollar was about 144.69. With the overall strengthening of the US dollar, the yen once fell to 145.29, then recovered some of its losses. Ueda made a number of common remarks indicating that the Bank of Japan will raise interest rates next, although traders interpreted his remarks as a possibility that the next rate hike may be delayed rather than brought forward. “Our short-term policy interest rate is 0.5%,” Ueda said in response to a question from Parliament. “Overall, we can say that in the face of strong downward pressure on the economy, there is very limited room to stimulate the economy.”

Bank of Japan Governor Ueda Kazuo said that the Bank of Japan is still some distance from its inflation target, and this statement has accelerated the weakening of the yen. Ueda downplayed the possibility of stimulating the economy by cutting interest rates, but mentioned that it may be necessary to support the economy, or leave the impression that the central bank's next move to raise interest rates will be even more distant. When Ueda began appearing in parliament today, the exchange rate of the yen against the US dollar was about 144.69. With the overall strengthening of the US dollar, the yen once fell to 145.29, then recovered some of its losses. Ueda made a number of common remarks indicating that the Bank of Japan will raise interest rates next, although traders interpreted his remarks as a possibility that the next rate hike may be delayed rather than brought forward. “Our short-term policy interest rate is 0.5%,” Ueda said in response to a question from Parliament. “Overall, we can say that in the face of strong downward pressure on the economy, there is very limited room to stimulate the economy.”