BOJ’s Kataoka: Recent US yield rise partly reflects hopes for fiscal policy, vaccine rollouts
|The Bank of Japan (BOJ) board member Goushi Kataoka is back on the wires now, via Reuters, noting that the recent US yield rise partly reflects hopes for fiscal policy and vaccine rollouts.
Key quotes
“Watching virus impact, will act if needed.”
“BOJ must respond flexibly if japan yields keeping rising.”
“But conditions have not reached that stage yet.”
“Yield target should be managed within 0.20%.”
“If the state of emergency is extended, that could affect consumption.”
“BOJ’s April quarterly report will take a decision on the state of emergency into account if the impact on the economy is big.”
“The BOJ hopes to support capex by companies seeking to adjust to changes caused by covid-19.”
“BOJ’s March review will look at whether BOJ’s ETF buying is exerting an intended effect. “
“Don't agree with view BOJ’s ETF buying is distorting markets.”
Market reaction
USD/JPY keeps its renewed upside intact, inching closer towards the seven-month tops of 106.96.
The spot currently trades at 106.85, up 0.17% so far.
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