Bank of Japan (BoJ) Kazuo Ueda hit newswires late Thursday, noting that while BoJ policymakers remain hopeful for a soft landing economic scenarios, moves in the Yen market need to be watched closely.

Key highlights

Policymakers continue to see a good chance of a soft landing in the global economy, though some see divergence among countries

When looking at fallout from weak yen on Japan’s inflation, we must look not just at yen moves but factors that are driving them such as market perceptions of the US economy.

The recent yen falls are driven partly by optimism over the US economic outlook.

The BoJ can still can afford to spend time scrutinising risks.

Optimism over the US economic outlook seems to be broadening somewhat.