The parliament heard testimony from the nominee to succeed Kuroda as head of the BOJ. The event was anticipated with great anticipation. Let’s see what new policies might be. On Friday, he spoke in front of the lower house. Today, he spoke in front of the upper house. He largely repeated what he had said last week.
His comments essentially stated that he supported the current policy and left the possibility of changing policy later, if necessary. The presentation was viewed as very cautious as he avoided answering specific questions about future policies. Some even characterized the Q&A session after his presentation as similar to a microeconomics lecture. Ueda made good use of his academic expertise to talk in generalities, in order not to say anything specific.
The markets’ reaction
Ueda spoke on Friday. However, the currency pair was volatile. Although traders had different interpretations of Ueda’s words in real-time, the currency remained stable. After all, he wasn’t announcing anything new, and it was widely expected that he would essentially confirm that he was in favor of maintaining the current policy for now. After…