Bank of Japan Governor Ueda – Japan's economy is recovering moderately, with some weak data available

Bank of Japan Governor Ueda answers questions again in Parliament today

• Japan's economy is recovering moderately despite some weak data.
• Consumption is improving moderately due to easing cost pressures and hopes for higher wages.
• Some companies appear to be delaying their investments, but investment plans remain firm.
• We have seen various data since January and more data will be released this week. We will take these fully into account to make an appropriate monetary policy decision.
• We focus on whether a positive wage inflation cycle is underway to assess whether a sustainable and stable achievement of our price target is in sight.

So far there is no real idea from Ueda which direction he is leaning towards. “Data dependent” seems to be the summary, especially when it comes to wage data. We will receive an indication of the results of the wage negotiations from March 13th and more from March 15th. The BoJ meets on the 198th and 19th.