BOJ Kuroda: Widening of yield band not step towards easy policy exit
|“The central bank's decision last week to widen the allowance band around its yield target was ‘absolutely not a first step’ towards an exit from ultra-loose monetary policy,” said Bank of Japan (BOJ) Governor Haruhiko Kuroda on Monday.
Additional comments
Japan's labour demand likely to increase mainly in face-to-face service sector.
Wages of permanent workers must rise in order for overall wages to achieve full-fledged increase.
Japan firms price, wage-setting behaviour likely to change as labour market tightens further.
Japan is in critical stage on whether it can shift away from prolonged low-inflation, low-growth economy.
BOJ will sustain accomodative monetary environment.
Year-on-year rise in japan's consumer prices likely to slow toward latter half of next fiscal year.
Must be vigilant to overseas economic, price risks.
Japan's core consumer inflation likely to slow below 2% on average in next fiscal year.
Market reaction
Following the news, yields on the Japanese Government Bonds (JGB) rose by 5.5 basis points (bps) to 0.447% by the end of Monday.
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