Seji Adachi, Board Member of the Bank of Japan (BoJ), has made further comments on the central bank’s Yield Curve Control (YCC) policy.
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We believe it will be difficult to judge inflation as trending above our forecasts, and adjust monetary policy only on the data available for our July meeting.
We want to take into account price data from several months, and the speed of price movements, to gauge the price trend.
We will not link monetary policy solely to price developmentsbut we will also look for any distortions in the yield curve and in the functions of the bond market.
What we do with our exceedance commitment will be tied to our decision about what we do with the YCC.
Using monetary policy as a tool to stem yen weakness would hinder progress towards the 2% inflation target.
We do not use monetary policy to directly manipulate exchange rates.
Source: Fx Street
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