BOJ’s Amamiya: March review will aim to make policy sustainable during normal periods
|The Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya said that the purpose of the March review is to ensure that the central bank can act effectively and timely to economic changes while speaking in a scheduled appearance on Monday.
Additional comments
March review will aim to make BOJ’s policy sustainable during normal periods.
BOJ must lower cost of policy by heightening sustainability of framework.
Fed's adoption of make-up strategy on its inflation target is in line with that of the BOJ.
Under YCC, Japan’s nominal interest rate has been kept very low even as overseas yields rose.
Expects coronavirus to exert downward pressure on economy, prices for a long period of time.
Japan's low real interest rate has improved financial environment.
Will need to support economy and achieve 2% price stability target.
Japan likely to eventually emerge from period during which inflation rate struggles to rise.
BOJ was able to control long-term yields because of its meticulous bond-buying operations.
Must carry out more effective, sustainable monetary easing.
The YCC has affected bond market's functions, which many indicators show have deteriorated.
Important to balance need to maintain market functions, control yields to make ycc sustainable, room to make some tweaks.
Japan economy remains in severe situation but picking up as trend.
Big yield fluctuation could have undesirable consequences but can have positive effect on bond market function if it's within certain range.
No change to BOJ’s view excessive falls in super-long yields could affect insurers, pension funds.
USD/JPY holds the lower ground
USD/JPY meanders near-daily lows of 108.31, posting modest gains on the day, hurt by the return of the risk-off mood despite the US dollar’s bounce and higher yields.
The above comments have little to no impact on the yen markets.
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