Uchida said
- Japan is currently at a stage where easy monetary policy must be patiently maintained
- The risk of losing the chance of reaching the price target with a premature shift from easy policy is greater than the risk of delays in tightening
- There's still a long way to go before we raise the price in the short term
- The Bank of Japan will maintain the policy framework as we have yet to see inflation sustainably
- As we control interest rates the impact on market function is inevitable
- When inflation expectations increase, the impact of monetary stimulus increases as do side effects, so we need to adjust both factors
- The Bank of Japan will offer to buy an unlimited 1.0% bond in a flat-rate process to contain rising interest rates
- When the 10-year bond yield moves between 0.5% and 1.0%, we will adjust the amount of bond purchases, and use different operating tools - - to limit excessive yield rises according to the level and pace of movements in long-term price
- Unlike December last year, there are no obvious side effects and distortion in the shape of the yield curve
- Inflation forecasts show signs of re-acceleration
- Last week's decision was a proactive move aimed at continuing uninterrupted monetary easing
- The timing of the YCC review will depend on the circumstances at the time because the response after problems erupt will make it harder to fix problems
- The B OJ's decision to make YCC more flexible is meant to maintain an easy policy, not something looking to get out of easy politics
- It will thoroughly examine whether wages will rise adequately and support consumption and whether wage increases will become an integral part of Japanese society next year and beyond
- We're seeing some signs of change in corporate pay and price-setting behaviour
- Even if inflation exceeds, the chance of wages rising sharply and causing prices to rise further is not great
Follow us on the free TV channel from here.
