- When markets are quite fragile, need to set a period to ensure it markets cool down
- Big and rapid market volatility is undesirable
- Upside risk to inflation has subsided somewhat when compared to USD/JPY being at 160
- A weak yen is being reversed somewhat
- But rise in import costs seen earlier this year will affect inflation with a lag
Balancing his remarks above, I would take it as saying that he is toning down from being too hawkish in his remarks today. And he is trying to fit in more with what other policymakers have been saying thus far. That being when markets are volatile and swingy, the BOJ will refrain from amplifying that with another policy change for now.
