BoJ’s Kuroda: The CPI is likely to increase moderately

Additional headlines hitting the wires from the BoJ Governor Kuroda are found below.

Long-term rates are largely influenced by the amount of bond bought by central banks on stock basis.

Yield curve control is designed as a highly sustainable policy framework.

Yield curve in Japan has been formed smoothly in a manner consistent with the guideline for market operations in the past year.

Companies are absorbing wage costs, so pass-through of wage costs to sales prices is not seen widely.

Workers and management place priority on stable employment over wage increases.

Companies’ stance is likely to shift toward raising prices.

Wage situation is changing as base pay rises.

The CPI is likely to increase moderately.

Overseas economies are the biggest risk for Japan's economy.

In forming appropriate yield curve, BoJ takes into account spillover effects on bank lending rates, impact on the economy and financial intermediation.

Main reason BoJ was able to guide 10-yr JGB yield around zero is cumulative effects of its past bond purchases.