BOJ Ueda - more - If trend inflation does not improve, maintain YCC

Bank of Japan Governor Nominee Ueda

Ueda testimony before the lower house of the Diet as part of his nomination and confirmation process.

Earlier:

• BOJ Ueda: standard monetary policy to not immediately respond to supply-driven inflation
• BOJ Ueda says inflation is peaking

More now:

• See no need to tweak language on price target of govt-BOJ BOJ The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with Read this Term policy statement
• Usually increasing money printing will boost demand but such effect has been diminished now with interest rates at zero
• Boj took various steps to ease market distortion including in December, now scrutinizing impact
• There are various possibilities on what YCC could look like
• Won't comment now on what appropriate form could be for YCC
• If trend inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term improves significantly, BOJ needs to move toward monetary normalisation
• If trend inflation does not improve, BOJ must consider ways to maintain YCC while being mindful of market distortions
• BOJ won't conduct bond-selling operation
• If BOJ were to normalise monetary policy, it will likely do so by raising interest paid to reserves parked with central bank
• If BOJ were to exit easy policy, must think about what to do with its etf holdings but now is not time to do so