Kazuo Ueda said Monday that he would continue monetary easing for the time being because he expects inflation to start slowing down soon. “Trend inflation is still below 2% so we need to continue monetary easing,” Mr. Ueda told a parliamentary committee. The central bank needs to examine the price outlook even more carefully, as it needs to start unwinding easing once trend inflation reaches 2%, he added. Mr. Ueda said the central bank might not be able to announce changes to its cap on 10-year Japanese government bond yields until the last minute to avoid any market confusion. The central bank will release its outlook on growth and prices at the end of the two-day meeting.

Source: Wall Street Journal April 24, 2023 04:20 UTC