BoJ Nominees Uchida, Himino struggle to defend dovish bias, USD/JPY grinds below 135.00

Japanese government's nominee for Bank of Japan (BoJ) Deputy Governors, namely Shinichi Uchida and Ryozo Himino, recently fueled the macro line with more monetary policy view. Following comments from BoJ Governor Nominee Kazuo Ueda.

Key comments from Uchida

UNCERTAINTY REGARDING JAPAN'S ECONOMY VERY HIGH.

INFLATION SHARPLY EXCEEDING BOJ'S TARGET BUT THIS IS LARGELY DUE TO COMPANIES PASSING ON HIGHER IMPORT COSTS TO HOUSEHOLDS.

BOJ MUST SUPPORT JAPAN'S ECONOMY BY MAINTAINING ULTRA-EASY POLICY.

WRONG TO TWEAK MONETARY POLICY JUST TO ADDRESS SIDE-EFFECTS.

RIGHT APPROACH IS TO COME UP WITH WAYS TO MITIGATE SIDE-EFFECTS, EFFECTIVELY MAINTAIN CURRENT POLICY.

WE ARE SEEING SOME SIDE-EFFECTS ON FINANCIAL INSTITUTIONS BUT BENEFITS OF CURRENT POLICY EXCEED COST.

WILL GUIDE POLICY FLEXIBLY, SEEK TO SUSTAINABLY, STABLY ACHIEVE 2% INFLATION TARGET ACCOMPANIED BY WAGE HIKES.

BoJ Nominee Himio speaks

IMPORTANT TO CONDUCT ECONOMIC POLICY FLEXIBLY.

CURRENT MONETARY POLICY IS APPROPRIATE.

MUST AIM FOR STRUCTURAL RISES IN WAGES.

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