Incoming BoJ Depty. Gov Uchida: Widening yield target band itself would weaken effects of easing

Dhwani Mehta FXStreet

Incoming Bank of Japan (BoJ) Deputy Governor Shinichi Uchida is testifying before the Japanese parliament’s Upper House on Tuesday.

Key quotes

Reviewing current easy policy just to address side-effects will reduce stimulus effect on economy.

Widening yield target band itself would weaken effects of easing.

It is too early to discuss an exit.

The specifics of the exit will be determined by the economic situation.

Difficult task from now on is to adopt timely steps taking economy, prices into account.

Financial stability is important factor when boj considers exit from stimulus.

Market reaction

USD/JPY fails to react to the dovish comments from Uchida. The pair is currently trading at 136.20, almost unchanged on the day.

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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