The USD/JPY pair remains steady, lingering close to its August lows.
The Japanese yen, in tandem with the US dollar, maintains its stability this Tuesday, with the current USD/JPY exchange rate at 142.22.
Kazuo Ueda, the Governor of the Bank of Japan, indicates that the central bank will contemplate a departure from monetary easing once firm control over inflation is achieved. The BoJ would consider such a shift if there's a reinforcing cycle between wages and prices, and the outlook for attaining the 2% inflation target is secure.
However, the specific timing for these considerations remains undetermined, given the heightened uncertainty prevailing in the economy and external financial markets.
Anticipations in the market suggest that the Bank of Japan might phase out its negative interest rate policy in the first half of 2024, especially with current consumer prices in Japan holding above the 2% target.