Bank of Japan Governor Ueda has published remarks on the Semiannual Report on Currency and Monetary Control (the full report is published each June and December).
- Statement before the Committee on Financial Affairs, House of Representatives
On Monetary policy, Ueda says (this in summary):
- now within sight that the price stability target of 2 percent would be achieved in a sustainable and stable manner toward the end of the projection period of the January 2024 Outlook Report, as various data and anecdotal information from firms had gradually shown that the virtuous cycle between wages and prices had become more solid.
- On this basis, the Bank considered that the policy framework of Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control and the negative interest rate policy to date had fulfilled their roles, and it therefore changed the monetary policy framework.
- Specifically, the Bank decided, among other measures, to set the uncollateralized overnight call rate as the policy interest rate and encourage that rate to remain at around 0 to 0.1 percent.
- Given the current outlook for economic activity and prices, it anticipates that accommodative financial conditions will be maintained for the time being.
