More from Ueda: Trend inflation remains below 2% but gradually accelerating

Bank of Japan Governor Ueda: • Trend inflation remains below 2% but gradually accelerating, which is partly due to effect of monetary easing. • It takes a very long for impact of monetary policy steps to appear on economy, prices. • Monetary policy steps taken now will affect economy, prices half-year, 1 year, 1.5 years ahead. • Tightening monetary policy now could push down inflation in future, which is already likely to slow on dissipating effect of import costs. • If we see risk of runaway inflation, we must normalise monetary policy We see risk of inflation undershooting forecast as bigger than risk

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