BOJ’s Ueda: Policy Modernization Aims at Price Stability

The signal here is less about any specific policy lever than about framing: the BOJ is presenting normalization as a price-stability project, not a tightening campaign, even as it acknowledges that underlying inflation has finally reached target. That distinction matters for yen-sensitive and rate-sensitive assets, since it implies gradualism rather than a sharp exit from ultra-loose conditions. The gap between achieving 2% and the governor's view that more effort is needed is the real story — it leaves the pace and sequencing of any further moves unresolved, and that ambiguity is what markets will keep pricing.