Ueda: Weak Core Inflation Is Reason for Loose BOJ Policy

The video discusses the current inflation rate, which is above the 2% target, but underlying inflation is slightly lower. The policy remains unchanged due to this. Wage growth, a key factor in inflation, is around 2%, indicating more progress is needed. The yen's weakness is influenced by various factors, not just monetary policy, and is monitored closely, though intervention is not within the central bank's jurisdiction.

Why is the monetary policy being kept unchanged despite inflation being above the target?

• Because the economy is in recession

• Because the inflation target has been raised

• Because core inflation is below 1%

• Because underlying inflation is believed to be lower than 2%

What is the relationship between wage inflation and the desired inflation rate?

• Wage inflation has no impact on the inflation rate

• Wage inflation should match the inflation rate exactly

• Wage inflation should be below 2% to achieve a 2% inflation rate

• Wage inflation should be slightly or well above 2% if productivity growth is positive

What is a key determinant of underlying inflation discussed in the video?

• Tax policies

• Government spending

• Wage increases

• Interest rates

What factors, other than monetary policy, influence the value of the yen?

• Only domestic economic policies

• Only international trade agreements

• Only the stock market performance

• Policies of other central banks

Who is responsible for decisions on currency intervention?

• The International Monetary Fund

• The Prime Minister

• The Ministry of Finance

• The Central Bank