Bank of Japan Governor Kazuo Ueda said Monday in his address to business leaders in Osaka that the central bank's monetary policy easing is becoming more sustainable with the help of flexible control of Japan's government bond yield curve. A tougher approach could have led to volatility in financial markets, he added.
Oeda reiterated that the Bank of Japan's goal of sustainable and stable achievement of the 2% price stabilization target, accompanied by increased wages is yet to come, and explained that easing and controlling the yield curve should continue for this reason.
Ueda also noted that moves in the U.S. financial system should be monitored over their potential global impacts, and noted that the slowdown in the pace of China's economic recovery is also a concern.
The Bank of Japan last Friday kept interest rates too low and pledged to continue supporting the economy until inflation sustainably reaches its 2% target, suggesting they are in no rush to get rid of the huge stimulus program and this easing policy.
