Incoming Bank of Japan (BOJ) Governor Kazuo Ueda said on Monday he had ideas on how the central bank could exit its massive stimulus, but a shift to tighter policy would only come when the country's trend inflation heightens significantly.
Earlier this month, the government named the 71-year-old academic as its pick to become next central bank governor in a surprise choice that markets initially saw as heightening the chance of an end to the unpopular YCC policy.
For now, the BOJ's ultra-loose policy was appropriate as the benefits of the policy, such as the boost to growth, exceeded the costs like deteriorating market functions, he said. He also said while it was premature to discuss specifics of an exit strategy, the BOJ must "always conduct various simulations" of an exit plan even before sustained achievement of its 2% inflation target is foreseen.
He also said the BOJ must be mindful of an unwelcome overshoot of inflation by maintaining a commitment to keep increasing money printing until inflation exceeds its 2% target.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Incoming BoJ Gov Ueda: Won't comment on what further steps are availableBank of Japan (BoJ) Governor designate Kazuo Ueda continues to speak on the monetary policy and inflation outlook during his appearance on Monday. Key
Consulte Mais informação »
Analysis: Incoming World Bank chief faces tests before he gets to climateAjay Banga, U.S. President Joe Biden's pick to run the World Bank, will face a tough slate of issues around the institution's finances and capital structure from the get-go, thorny problems he must address as he reshapes the bank into a force for combating climate change on top of its traditional role as a poverty fighter.
Consulte Mais informação »
USD/JPY: The Yen weakness to stay limited – Goldman SachsEconomists at Goldman Sachs outlined their view on the Japanese Yen, in the face of the incoming Bank of Japan (BoJ) Governor Kazuo Ueda and hawskish
Consulte Mais informação »
BOJ's Kuroda says he is resolved to keep ultra-loose policyBank of Japan (BOJ) Governor Haruhiko Kuroda on Saturday stressed anew the central bank's resolve to maintain ultra-loose monetary policy, even as inflation continued to exceed its 2% target.
Consulte Mais informação »
GBP/JPY struggles to extend upside above 163.00 ahead of BoJ Ueda speechThe GBP/JPY pair is facing hurdles in stretching the upside above 163.00 in the Asian session. The cross is expected to resume upside as investors are
Consulte Mais informação »
USD/JPY retraces to 136.00 as yields pull back from multi-day high, BoJ talks eyedUSD/JPY consolidates the biggest daily gains in three weeks as it renews its intraday low near 136.00 while reversing from the highest levels in two m
Consulte Mais informação »