BOJ’s Sakurai: Main priority is to control yields

Dhwani Mehta FXStreet

Bank of Japan (BOJ) board member Makoto Sakurai is back on wires now, via Reuters, noting the following:

Maintaining current monetary policy, fiscal stimulus

Should be enough for now as Japan's economy recovering

Is fine to just monitor current fiscal, monetary policy

No need to change expected timing of hitting 2% inflation as per April's BOJ quarterly report

Fiscal consolidation is an important long term goal

Believes it would be fine to maintain for now BOJ's pledge to increase its bond holdings by around JPY 80trln this year

It is true BOJ's recent bond buying pace somewhat slower compared with pledge

Main priority is to control yields so amount of its bond buying may fluctuate from time to time

Don't need to take additional easing steps if timing for hitting price goal is delayed from what was forecast in April outlook report

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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