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 target from current 0%
- BOJ must be mindful that once inflation 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)
