MNI BRIEF: BOJ Uchida: Deal Big Advance; Reduces Uncertainty

Bank of Japan Deputy Governor Shinichi Uchida said on Wednesday that the trade deal between Japan and U.S. is a big advance and reduced uncertainties over the economy and inflation outlook.

“But we cannot confirm or examine the impact of the trade policy on global and Japanese economies through hard- economic data, so uncertainties over the impact of the trade policy on other countries and on economic activity remain high,” Uchida told reporters in Kochi City.

Uchida didn’t refer to an imminent rate hike chance and the BOJ needs to maintain the easy policy to firmly support the economy.

He also said that the BOJ will carefully analyze the impact of the trade deal on the economy and inflation, and will incorporate them into the Outlook Report due out on July 31, but noted that the BOJ needed to pay attention to both upside and downside risks.

When asked about the rise in long-term interest rates, Uchida said that there is no rapid surge in long-term interest rates, indicating the BOJ sees no imminent need to intervene in Japanese government bond markets, adding that long-term interest rates tend to move freely based on economic and price conditions, and market players’ view on economy and prices. H noted the BOJ stands ready to act in JGB markets, if necessary.