BOJ Dep Gov Uchida says will maintain YCC to help continue easy monetary conditions

Bank of Japan Deputy Governor Uchida in Japan’s Nikkei media this morning:

  • Will maintain YCC from perspective of sustaining easy monetary
    conditions
  • Want to make
    decision from perspective of how to sustain easy policy with eye on
    impact on financial intermediation, market function, when asked about
    likelihood of tweaking YCC
  • Japan is seeing
    signs of change in corporate wage, price-setting behaviour
  • Risk of missing chance to hit 2% inflation with premature policy
    shift is bigger than being too late in tightening monetary policy
  • There is huge distance to ending negative rate, a decision that would
    be tantamount to a 0.1% rate hike

And, on the yen:

  • Rapid, one-sided yen declines are undesirable, fx must move stably
    reflecting economic fundamentals

more to come

This article was written by Eamonn Sheridan at www.forexlive.com. Source