Takata Sticks To Central View, Need To Maintain Easing & Watch Market Functioning

Comments from BoJ board member Takata stuck with the central BoJ view, as he underscored the need for the continued deployment of the Bank’s current easing settings. Takata flagged the need for patience in doing so, stressing that the Bank is yet to meet its 2% inflation goal on a sustainable basis. He also pointed to the need to scrutinise market developments to ensure JGB moves are stable, while accounting for the spill over of the Bank’s policy settings re: market functioning. On the wage front, Takata stressed that global uncertainty muddies the view on the outlook for increases.

• JGBs have largely looked through his comments, with a very modest uptick in the JGB futures contract ahead of the Tokyo lunch break after it had already found a bit of a base pre-Takata, although the super-long end of the cash curve held its pre-Takata cheapening.