BoJ Governor Ueda say discussed with central banks need to communicate for appropriate monetary policy to achieve price stability as global environment changes

Says: Held talks with Bessent but no comment on details of their meeting. Held productive discussions on various topics. No comment on day-to-day market moves or on markets pricing a strong chance of a September rate hike. Data released since the July meeting has been broadly in line with the projections in our July quarterly report. Our basic monetary policy stance is largely unchanged from July. We will pay particular attention to the impact of the Middle East conflict, AI demand and FX moves on the economy and prices when setting policy. We will discuss the appropriate policy stance, including at our next meeting, while closely assessing the economy, prices and financial conditions. We will assess whether the economy and prices are developing in line with our scenario, as well as the associated risks. We would like to discuss at the next board meeting whether the likelihood of our economic scenario materialising has increased and whether inflation risks have risen. Monetary conditions remain accommodative, so we would like to continue increasing rates. We have raised our policy rate five times so far, so we need to carefully assess how the cumulative impact could affect the economy. That said, we will also take upside price risks into account when deliberating policy. Underlying inflation is quite close to 2%, and we need to ensure it stabilises around that level. We would not focus solely on FX or react more strongly than before to currency moves when setting policy. From a risk-management perspective, we are paying greater attention than before to both upside and downside risks, with a particular focus on upside price risks. We are scrutinising FX moves as one of the factors contributing to upside price risks.