- FX moves have big impact on prices
- BOJ closely watching impact on yen moves on the economy, prices
- Weak yen benefits exports, tourism but is negative for domestic-driven firms and households
- Decision on when to end negative rates depends on economic developments
- If Japan achieves sustained economic recovery, we won't need YCC
- But unfortunately, the deflationary mindset has not been eradicated yet
- So now is not the time to get rid of YCC
A little bit of this, a little bit of that there by Nakamura. But all in all, these remarks are ones that we have heard for many a time already even since the Kuroda era. If anything, it shows a lack of policy progressiveness so far under the new regime.