• cutting 0.1% floor on market rates could make it hard for BOJ to meet asset-buying target
  • may have to review the way the BOJ buys assets if it were to target longer-dated JGBs
  • BOJ buying longer-dated JGBscould give markets the impression it is monetising public debt
  • undesirable to set strict deadline to achieve 2% inflation
  • BOJ is not aiming to push up prices near its target hastily. seeking low long-term price stability
  • should not focus too narrowly on size of asset buying, key is sustainability and effect of policy steps on market prices
  • Govt efforts to fix Japan’s finances would make it easier for BOJ to buy more assets, target longer-dated JGBs