BOJ’s Uchida: Decision to make YCC flexible not a move towards ending ultra loose policy

  • If economy, prices remain roughly unchanged, don’t expect rates to rise sharply
  • BOJ will curb excessive rise in long-term rates
  • Does not want to comment on day-to-day FX moves
  • But it is very important for exchange rate to move stably, reflecting fundamentals

This builds from his earlier remarks here. For now, there is still no indication yet that they are stepping in too strongly in the JGB market as 10-year yields hit 0.626%.

This article was written by Justin Low at Source