Bank of Japan (BOJ) monetary policy board member Goushi Kataoka emphasized the central bank’s desire to get higher inflation.
Key quotes
“BOJ should clarify its intention of cutting rates, buy JGBs aggressively.”
“By cutting rates the Bank of Japan can ease the burden on companies.”
“Bank must promise to act under specific conditions, and stress it will not tolerate deflation.”
“One idea is for the Bank of Japan to promise to ease further if prices deviate from its target, to tie its policy rate decisions more specifically to its price goal.”
“By easing further to contain price falls the BOJ can achieve its price goal quicker and minimise the side-effects of its easy policy.”
Market reaction
USD/JPY trades better bid near-daily highs of 106.27 amid optimism over the Japanese political scenario, which drives the Japanese equities higher.
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Leave Your Message Now