MNI BRIEF:BOJ's Ueda Sees Econ Package Boosting Underlying CPI

Bank of Japan Governor Kazuo Ueda said on Thursday that the government’s economic stimulus package will have a positive impact on economic growth and boost underlying inflation.

Ueda told lawmakers that the stimulus package, mainly countermeasures to cope with high prices, will lower headline CPI, but it will exert upward pressure on underlying inflation through economic growth. However, he could not comment on the degree of the impact.

When asked about the neutral interest rate, Ueda said it is difficult for the bank to pinpoint it due to the wide estimate range. (See MNI POLICY: BOJ Frets Over Neutral Rate Update) He did not refer to the outlook for monetary policy ahead of the Dec 18-19 policy-setting meeting, despite his comments Monday that were interpreted as a strong hike signal.