MNI BRIEF: BOJ Will Not Fall Behind The Curve - Ueda
Bank of Japan Governor Kazuo Ueda said on Monday the inflation rate will rise temporarily above the target as a result of the Bank's risk management approach, but this will not mean the Bank will fall "behind the curve aggressively."
He told reporters the BOJ will continue to conduct monetary policy based on the risk management approach and focus on downside risks to prices. The BOJ will not conduct monetary policy to address foreign exchange rates, but the Bank will closely watch the impact of forex moves on the economy and prices, Ueda added.
He did not elaborate on conditions that may prompt the BOJ to raise the long-term policy interest rate from around zero percent, but he said the Bank will scrap yield curve control if the stable and sustainable achievement of the 2% target comes in sight.