Ex_BOJ dep gov says the Bnka must be ready to adjust YCC early next year

more to come

Ex-BOJ Deputy Governor Yamaguchi:

• BOJ boj must stand ready to tweak YCC next year if Japan's economy can withstand overseas economic risks

• If BOJ were to tweak YCC, one idea would be to raise 10-year JGB yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term target from current 0%
• BOJ must be mindful that once 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 expectations become entrenched, it is very hard to control them
• BOJ must enhance flexibility of its monetary policy such as by removing commitment to keep increasing pace of money printing until inflation stably exceeds 2%
• Don't see any merit to changing BOJ’s joint statement with govt at this moment

Background to this is here:

Yen found strength in the very early hours of Asia on the back of a weekend report canvassing changes to the BOJ 2% inflation target once Bank of Japan Governor Kuroda leaves his role in April in 2023:

• Monday morning forex open early indications - 19 December 2022 (BOJ chatter boosting yen)
• Weekend report on BOJ's 2% inflation target: "more flexible" (ps. not until April 2023)

• Japan government bonds, early stocks (Nikkei futures) lower after weekend BOJ chatter