Bank of Japan Governor Kazuo Ueda (植田 和男) assessed corporate sentiment in the September Tankan as being at a favorable level and said that price increases had begun to spread to the consumer stage. He also referred to the operation of monetary policy against the backdrop of the effects of higher crude oil prices and a weaker yen.
BOJ Governor Ueda (植田 和男) said he viewed corporate sentiment in the latest September Tankan as being at a “favorable level.” He said conditions had improved mainly in manufacturing, while capital investment was on a moderate upward trend despite being affected by higher construction costs.
Regarding price developments, he warned that domestic corporate prices were likely to continue rising sharply year on year due to higher crude oil prices and a weaker yen, and pointed out that the underlying rate of increase in consumer prices was approaching the 2% target. He also expressed the view that medium- to long-term inflation expectations would continue to rise.
Regarding the monetary policy stance, he explained that financial conditions remained accommodative after the previous additional rate hike. While reiterating the policy of raising the policy rate and adjusting the degree of monetary accommodation in response to economic, price and financial conditions, he said the Bank would examine the feasibility of achieving its price stability target.