BoJ Ueda: It is reasonable to continue easing with YCC
|New Bank of Japan (BoJ) Governor Kazuo Ueda speaking in Parliament says it is appropriate to continue with yield curve control, YCC.
Key comments
Japan's yield curve is now smooth.
It is reasonable to continue easing with YCC.If wages, inflation rise more than expected, BoJ will tighten monetary policy such as by raising interest rates.
Extremely important for forex rates to move stably reflecting fundamentals.
BoJ must focus on achieving price stability in guiding monetary policy when asked about impact of ultra-low rates on Yen moves.
Meanwhile, Japan´s Financial Minister Suzuki has said that there may be some 'movements' in Japan's monetary policy in the future, which poses various challenges in sustaining stable debt issuance.
A senior Ministry of Finance official said ´´we will strive to keep debt issuance costs low by changing maturity, distribution of JGBs issuance in accordance with any future change in BoJ's monetary policy.´´
As for the Yen, USD/JPY is heading a touch higher, with eyes on 134.50 and 134.70, currently at 134.25, and bid on the front side of the bullish daily trendline.
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