Free Trial

MNI BRIEF: Cannot Clarify BOJ Policy Removal Order - Ueda

(MNI) Tokyo

Bank of Japan Governor Kazuo Ueda said on Thursday that he cannot clarify the order policymakers would remove yield curve control and negative interest rates in moving toward the normalization of easy policy.

Ueda told lawmakers that the order will depend on economic and price conditions when the BOJ can foresee the achievement of 2% price target, adding the central bank will continue with negative rates and the the YCC framework until hitting the bank’s 2% target was in sight.

Ueda also said whether a virtuous cycle between wages and higher prices is a crucial factor in realizing the 2% target and wage negotiation next spring will be one factor in assessing its strength. Stronger-than-previous corporate price-setting behavior has been seen and the BOJ is monitoring whether this continues, he added.

MNI Tokyo Bureau | +81 90-2175-0040 |
MNI Tokyo Bureau | +81 90-2175-0040 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.