The Bank of Japan (BOJ) must make its monetary policy framework more flexible and stand ready to raise its long-term interest rate target next year if the economy can withstand overseas risks, former deputy governor Hirohide Yamaguchi told Reuters.
Yamaguchi, who is considered a candidate to become next BOJ governor, said Japan is already seeing signs of "home-made" inflation, in which broadening price hikes heighten public perceptions that inflation will keep rising longer-term.
"There's a chance core consumer inflation may stay around 3-4% for a fairly long period," Yamaguchi said. "Once inflation expectations become entrenched, it's very hard for central banks to control them. That's a risk the BOJ should be mindful of."- a controversial policy combining a negative short-term rate target with a 0% cap on the 10-year bond yield - when Governor Haruhiko Kuroda's term ends in April.
"When prices start rising, it's very hard to maintain yield curve control" as long-term rates face upward pressure, he said. "The BOJ will find it too risky to abandon YCC in a single blow. If so, the natural answer would be to adjust YCC in small steps," Yamaguchi said. "One idea could be to raise the 10-year yield target and set an allowance band around it."
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
BoJ to water down price targetReuters reported that Japan's government is set to revise a decade-old joint statement with the Bank of Japan (BOJ) that commits the central bank to a
Consulte Mais informação »
Japan to Enforce Less Stringent Crypto Tax RulesJapanese crypto issuers might no longer have to pay 30% corporate tax on their holdings as of April 1, 2023.
Consulte Mais informação »
U.S. Marine Reportedly Steals And Crashes New Honda Civic Type R In Japan | CarscoopsU.S. Marine Reportedly Steals And Crashes New Honda Civic Type R In Japan | Carscoops carscoops
Consulte Mais informação »
US Weapons Makers Set to Profit as Japan Readies $320 Billion Military BuildupJapan, a professed pacifist nation since the end of World War II, is set to become the planet's third-biggest military spender. It will be armed with U.S.-built missiles capable of striking China.
Consulte Mais informação »
Pokémon TCG Japan: Scarlet & Violet Ex Preview: Miraidon ExMiraidon ex is the mascot of PokemonTCG Japan's Violet ex set, which will in part be adapted into the English Scarlet & Violet base set. Pokemon
Consulte Mais informação »
EXPLAINER: Why Japan is boosting its arms capability, budgetTOKYO (AP) — Japan this week adopted a new national security strategy that includes determination to possess “counterstrike' capability to preempt enemy attacks and double its spending to gain a more offensive footing and improve its resilience to protect itself from growing risks from China, North Korea and Russia.
Consulte Mais informação »