Bank of Japan (BoJ) Deputy Governor Masayoshi Amamiya said on Friday that he doesn’t see any imminent need to make YCC more flexible.
Additional quotes
Appropriate to maintain current ultra-loose monetary policy.
There are demerits to our YCC policy.
Demerits of YCC include impact on market function.
Japan has yet to see conditions fall in place for inflation to stably, sustainably reach 2% target.
Distortion in yield curve remains but there are improvements seen.
BoJ will seek to improve market function by mixing bond buying with fund supply operation against pooled collateral.
BoJ will continue efforts to maximise impact of YCC while minimizing side-effects.
YCC is an extraordinary policy so must carefully weigh its benefits, costs.
Maintaining 2% inflation target is appropriate.
Our current policy was appropriate as economy, prices improved significantly.
There are debates overseas on what level of inflation would be appropriate to target for central banks.
For now, BoJ sees 2% inflation target as appropriate as it is a global standard.
Premature to debate exit from easy policy, including what to do with BoJ’s ETF holdings.
It’s true buying etf is abnormal policy for a central bank.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
