The Japanese yen paired with the US dollar is stable on Tuesday. The current USDJPY exchange rate stands at 142.22.
According to Kazuo Ueda, the Bank of Japan’s governor, the regulator will consider a shift away from monetary easing when control over inflation is ensured. If a virtuous cycle between wages and prices intensifies, and the prospects of achieving the 2% price target are stable, the BoJ will consider changing its monetary policy.
The timing of these considerations has not been determined due to the high degree of uncertainty in the economy and external financial markets.
The market expects the Bank of Japan to end its negative interest rate policy in the first half of 2024, with consumer prices in Japan currently remaining above the 2% target.