Fed's Musalem: Inflation remains above target and jobs mkt cooling, so 'a little tension' between mandates

Just in | RBA Governor Bullock Acknowledges February Recognition of Excessive Inflation. RBA Governor Bullock: Patience Needed in Assessing Policy

Fed's Schmid: Last year's FOMC dissents were not done lightly. FED'S SCHMID: POWELL IS A 'PATRIOT' WHO WANTS TO DO THE RIGHT THING FOR NATION FED'S SCHMID: NEVER RETURNING TO FED BALANCE SHEET SIZE SEEN BEFORE FINANCIAL CRISIS FED'S SCHMID: MAIN FOCUS OF FED BALANCE SHEET DEBATE IS ABOUT SIZE OF RESERVES

Bank of Japan Governor Kazuo Ueda reinforced the central bank’s tightening bias, signalling that further rate hikes remain likely if incoming data strengthen confidence in the Bank’s economic and inflation forecasts. In comments reported by Yomiuri, Ueda said the BoJ’s “basic stance” is to continue raising interest rates if the probability of its growth and price projections materialising increases. While underlying inflation has yet to fully reach the 2% target, policy will be guided to ensure it converges sustainably to around that level without overshooting on a persistent basis. Ueda added that the Bank does not believe it is behind the curve in addressing the risk of excessive inflation, and said there has been no change since January to the projected timing for achieving the price target. He expects inflation to re-accelerate following the current slowdown. Importantly, Ueda flagged upside risks. If the outcome of the spring wage negotiations proves stronger than expected and firms pass higher labour costs through to prices more swiftly, the 2% inflation target could be achieved sooner than currently projected — a comment that tilts hawkish at the margin. Looking ahead, Ueda noted that while the April Tankan survey will be an important input, the BoJ is conducting multiple surveys and does not need to wait for the Tankan release to have sufficient data. With policy meetings scheduled for March and April, he said the Bank will scrutinise all available information and reach a decision, responding to growing market speculation that a rate hike could come as early as April. BOJ GOVERNOR UEDA: DOES NOT EXPECT MAJOR IMPACT FROM NEW TRUMP TARIFFS ON JAPAN BUT MONITORING CLOSELY; BOJ TO REVIEW DATA AT MARCH AND APRIL MEETINGS BEFORE DECIDING ON POLICY – YOMIURI.