BoJ’s Ueda: Will consider appropriate steps if interest rates breach 1%
|Further comments are flowing in from new Bank of Japan Governor Kazuo Ueda on Friday, as he addresses the press conference that follows the monetary policy meeting.
It is appropriate to maintain strong monetary easing.
Will consider appropriate steps if interest rates breach 1%.
Will fall behind the curve if we try to respond to excessive interest rate rise at the time.
We have expanded room for ability to deal with upward moves in interest rates.
'Not so' when asked whether policy decision was biased towards tightening.
Today's decision to enhance 'flexibility' is not that different to a 'change' in policy.
If risks materialize it would be too late to respond.
We are aiming to rely on markets to determine long-term rates but there should be limits.
Downside risks to prices are not negligible either, for example weaker global, china economy pose not so optimistic outlook.
1.0% is defined as a 'just-in-case cap'.
What happened in December to January was extreme emergence of side-effects by trying to respond to risks that were already visible.
2% inflation has already been achieved for some time, but we are not confident about future rebound and decided to maintain monetary easing.
Market reaction
USD/JPY was last seen trading at 139.33, down 0.08% on the day.
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