Under its new boss Kazuo Ueda, the Japanese central bank wants to stick to its loose monetary policy for the time being. Inflation forecasts would need to be fairly strong and inflation close to 2 percent next year to tighten yield curve control, Ueda told Japan’s parliament. Japan’s inflation rate will soon peak and then fall back below the Bank of Japan’s (BOJ) target of 2 percent, the central bank governor said. With the Yield Curve Control (YCC), the monetary authorities are aiming for targets of minus 0.1 percent for short-term interest rates and zero percent for the yield on ten-year government bonds. The head of the central bank, who has been in office for a few weeks, left open how the BOJ could say goodbye to the YCC.
Monetary policy – Japan remains ultra-loose – Economy
