MNI BRIEF: BOJ's Wakatabe Maintains Commitment To Easy Policy

Bank of Japan Deputy Governor Masazumi Wakatabe said on Thursday that the BOJ’s commitment to continuing with monetary easing has not changed at all, despite the bank widening the range around its 10-year yield target in December.

“The BOJ modified its conduct of yield curve control in order to improve market functioning while maintaining accommodative financial conditions,” Wakatabe told business leaders in Shizuoka City.

“The modification was done with the aim of enhancing the sustainability of monetary easing under yield curve control,” he said.

“The Bank expects that the modification will facilitate the transmission of monetary easing effects generated under this framework. In order to stabilise the entire yield curve at a low level, the Bank has also increased its amount of Japanese government bond (JGB) purchases.”

"Although the current situation differs from those seen in the past, there are extremely high uncertainties over future developments, and I believe that it is necessary to continue pursuing monetary easing steadily in order to achieve the price stability target in a sustainable and stable manner."