Bank of Japan Deputy Governor Masayoshi Amamiya said on Friday that sees no imminent need to ease yield curve control (YCC).
Additional comments
Is appropriate to maintain the current ultra-easy monetary policy.
There are demerits in our yield curve control policy.
Among the disadvantages of the YCC policy is its impact on the functioning of the markets.
In Japan The conditions are not yet in place for inflation to reach the 2% target in a stable and sustainable manner.
The yield curve is still distorted, but improvements are observed.
The BoJ will try to improve the functioning of the markets by combining the purchase of bonds with operations of provision of funds against pooled collateral.
The BoJ will continue to strive to maximize the impact of the YCC while minimizing the side effects.
The YCC is an extraordinary policyTherefore, their benefits and costs must be carefully weighed.
Maintaining the 2% inflation target is appropriate.
Our current policy has been adequate as the economy and prices have improved significantly.
There is debate abroad about what level of inflation would be an appropriate target for central banks.
For the time being, the BoJ considers the 2% inflation target to be appropriate as it is a global norm.
It is premature to debate the way out of the expansive policyincluding what to do with BoJ ETF holdings.
It is true that buying ETFs is abnormal policy for a central bank.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
