“Japan’s economy is still halfway in recovering from pandemic’s impact,” a senior Bank of Japan (BOJ) official said in his speech on Tuesday.

Additional quotes

The expected rise in Japan’s inflation driven largely by energy costs, won’t lead to a sustainable, steady rise toward BOJ’s 2% target.

BOJ will maintain powerful monetary easing as Japan’s wage, prices likely to remain subdued.

BOJ will scrutinize market impact of its policy.

Market reaction

The Japanese yen is recovering ground despite these dovish comments from the BOJ official, as the risk sentiment remains tepid amid surging covid cases in China and looming Ukraine risks.

USD/JPY is off the 118.44 highs, now trading at 118.31, adding 0.12% on the day.

This article was originally published by Fxstreet.com.Read the original article here.


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