Bank of Japan Governor Ueda says Bank has limited room to support growth with rate cuts ...Middle East

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Bank of Japan Governor Ueda says Bank has limited room to support growth with rate cuts

Bank of Japan Governor Ueda is speaking in the Japanese parliament.

If economy, prices come under strong downward pressure, BOJ has limited room to underpin growth with rate cuts with short-term rate still at 0.5%Underlying inflation still below 2%BOJ keeping real interest rate negative so underlying inflation achieves 2%, and keeps inflation sustainably and stably at 2%We will raise interest rates if we have enough confidence that underlying inflation nears 2% or moves around 2%

The yen is weakening on Ueda's comments, its up from around 144.60 to just under 145.00 as I update. Having said this, the USD is stronger right across the majors' board. EUR/USD, for example is under 1.14 having dropped from around 1.1425.

    This article was written by Eamonn Sheridan at www.forexlive.com.

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