MNI BRIEF: BOJ Wakatabe: Widening 10-Yr Range Means Tightening

Bank of Japan Deputy Governor Masazumi Wakatabe said on Wednesday that widening the 10-year long-term interest rate range would be equivalent to policy tightening.

“If the BOJ widens the 10-year range, it would mean that the bank raises interest rates,” Wakatabe told reporters adding that a rise in the upper range to 0.30% from 0.25% would undermine the view that the bank has previously clarified the range of the 10-year rate as -0.25%/+0.25%. Wakatabe also said that he doesn’t see an imminent need of additional easy policy now, although he said that the BOJ without hesitation will act if downside risks to the economy materialize.