Previous Trading Days Events 19 Dec 2023

The Bank of Japan BOJ decided to maintain an ultraloose policy as widely expected. The bank needs more evidence on whether wages and prices would rise enough to justify a shift away from massive monetary stimulus. BOJ Governor Kazuo Ueda said prices and wages appeared to be moving in the right direction with labour unions and big firms signalling the chance of sustained wage gains next year. But he warned that conditions remained uncertain.

Bank of Japan governor Kazuo Ueda The chance of trend inflation accelerating towards our price target is gradually heightening, Ueda said in a press conference after the meeting. But we still need to scrutinise whether a positive wageinflation cycle will fall in place.

Obviously, I am always thinking about various scenarios about how we could change policy when certain conditions fall into place, Ueda said.

He also said the BOJ wont rush into raising rates just because the U.S. Federal Reserve could start cutting them soon.

The BOJ kept its shortterm rate target at 0.1 and that for the 10year government bond yield around 0. It also left unchanged a pledge to ramp up stimulus without hesitation if needed.

Source httpswww.reuters.commarketsasiabojfocusjapansprogresshittingpricegoal20231218

According to the reports yesterday, Canadas annual inflation rate unexpectedly remained at 3.1 in November with CPI Change figures to be reported unchanged.

The November release suggests those…