In case you missed it, you can check out Ueda’s comments here. And as mentioned at the start of last week, one should not expect Ueda to turn any heads before he officially takes over from Kuroda as BOJ governor this coming April.
“The parliament hearings to confirm Ueda on 24 and 27 February are ones that markets will be watching closely but if anything else, I think we are just going to get the same old remarks from Ueda himself as you would with Kuroda. This is a guy coming in to a position that some would say is just a poster boy for the government in determining its policies. Japan hasn’t been renowned to push the boundaries of challenging the convention, so of course Ueda will not step out of line and put out any overly hawkish remarks – not when he is not even confirmed yet and when Kuroda is still the man in the seat until 8 April.
“He might offer up some slight added flexibility on policy but I reckon that will be about it. He should reiterate that the current BOJ monetary policy stance is “appropriate”, with the need to achieve the 2% inflation target in a “stable, sustainable” manner. However, he might caution against existing policies but I reckon he will do so in a manner such as having to “weigh the benefits and costs” of said policies.
“That is not to say though that he won’t be the one to guide Japan out of this ultra easing policy. If the data continues to trend in the way it has in the past few months and if the spring wage negotiations turn out to be more bullish, those factors could really bolster the odds of Ueda heralding a big change at the central bank.”