MNI BRIEF: BOJ To Conduct Policy In Balanced Manner - Uchida

Bank of Japan Deputy Governor Shinichi Uchida said on Wednesday that the BOJ will continue to conduct monetary policy in a balanced manner, while carefully monitoring volatility in financial markets, including foreign exchange rates and market functioning.

“Foreign exchange-rate moves have a big impact on economy and prices, and the BOJ continues to stay in close contact with the government,” Uchida told reporters. He decline to comment on recent U.S. dollar, yen moves but noted it was extremely important that foreign exchange moves reflected economic and financial conditions "in a stable manner.”

The yen weakened against USD despite the BOJ’s decision increase the flexibility of yield curve control last week. (See MNI BRIEF: BOJ On Hold; Makes 10-Yr Rate Moves More Flexible)

Uchida declined to comment on whether the BOJ has set a perceived range of the 10-year interest rates after last week's move.

Uchida also said that he doesn’t see a sharp rise in long-term interest rates, judging from current economic and financial conditions, and the BOJ will strive to prevent the long-term interest rate from rising above 1% through all possible measures