BOJ's Sakurai: Yield curve control will boost inflation expectations

Omkar Godbole FXStreet Contributor

Bank of Japan (BOJ) board member Sakurai said on Thursday expressed confidence the stimulative effect of yield curve control policy will boost inflation expectations and stressed the BOJ needs to hit the price goal at the earliest date possible.

Key quotes (Source: Reuters)

BOJ board member Sakurai says monetary policy must seek to maintain as long as possible current tightened supply-demand conditions
Boj must aim to hit price goal at earliest date possible but that doesn't mean it will do so recklessly
The stimulative effect of the yield curve control will heighten as inflation expectations, economy's long-term growth strengthen
Boj must seek most appropriate policy with no preset idea with an eye on the balance of economy's demand, supply
Undesirable for a specific timeframe, indicator to come under too much focus as monetary policy must take into account various uncertainties
Given weak inflation, now is time to patiently maintain the easy monetary policy
Leaving distortions in economy's supply-demand balance unattended for long could cause unnecessary swings in economy
Boj must ensure prolonged easy policy does not destabilise financial system
Financial intermediation may be affected if financial institutions' profits come under pressure from low rate environment

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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