BoJ Governor Sticks to Script Amid Market Expectations

Bank of Japan Governor Kazuo Ueda met with US Treasury Secretary Bessent on the sidelines of the G20, but declined to comment on their discussions. He did say that central banks need to improve communication to achieve suitable monetary policy in a changing global environment.

Ueda made it clear that he would not comment on daily market movements or the likelihood of future rate hikes, which markets are currently pricing in at a high probability for September.

The BoJ's recent data has largely matched projections from its July quarterly report, and Ueda stated that their fundamental approach to monetary policy remains mostly unchanged. However, he emphasized the need to carefully assess the cumulative impact of five consecutive rate hikes on the economy.