Japan press - BOJ board member Takata says now is not the time to end yield curve control

Bank of Japan monetary policy board member Hajime Takata in an interview with Japan's Nikkei newspaper published on Saturday.

• Japan's economy is not yet in a phase where the central bank can end yield curve control (YCC)
• too soon to start a discussion about concrete methods of ending yield curve control
• careful messaging would be needed when the time comes

Takata acknowledged that risks have built due to the prolonged period of ultra-easy policy.

-

Takata is basically saying the same as Bank of Japan Governor Kuroda. Kuroda has repeated time and again that current policy is appropriate. This from just last week:

• when achieving the 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 target comes in sight the BOJ will likely debate a path towards an exit from easy monetary policy
• at present, though, the benefits of current monetary easing outweighs the costs

It pays to be aware that there is some murmuring in Japan about trimming back easy policy. From senior officials. As an example:

• BOJ's Tamura says policy should be reviewed, says 2% CPI goal may be too high for Japan
• Possible BOJ Kuroda replacement says the Bank should review its policy

-

While an exit from YCC or any other leg of Japan's current ultra-loose monetary policy is not imminent, its something to watch out for in the new year, most likely some time after Q1. Governor Haruhiko Kuroda's finishes in April 2023. New blood could bring new ideas. The JPY JPY The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by The Japanese yen (JPY) is the official currency of Japan and at the time of writing is the third most-traded currency in the world behind only the US dollar and euro.The JPY is used extensively as a reserve currency and is relied upon by forex traders as a safe haven currency.Originally implemented in 1871, the JPY has had a long history and has survived multiple world wars and other events. This was followed by the creation of the Bank of Japan (BoJ) in 1882 and the full oversight of the JPY by Read this Term is seeing a headwind from current policy, especially as most other DM central banks jack rates higher. A change to YCC or any of the other planks of easy policy would be yen supportive, at the margin.

Bank of Japan monetary policy board member Hajime Takata. Takata is one of two new board members appointed under Prime Minister Kishida.