Kiuchi is a dissenter, so comments not surprising from him

  • Must make 2 pct inflation medium- to long-term target
  • Shouldn't persist in strengthening monetary easing, instead ensure real long-term rates remain low stably
  • Must normalise BOJ's unconventional monetary easing steps at appropriate timing
  • Must carefully watch for potential demerits of ultra-easy policy
  • Yield curve control has some merits such as making room for slowdown in BOJ's JGB purchases
  • There is risk yield curve control could lead to acceleration of BOJ's bond buying pace
  • Hard to guide market operations stably if BOJ sets target for both interest rates and quantity of money printing
  • Trying to control long-term rate levels could destabilise economy
  • Won't be easy to change BOJ's yield curve target
  • Frequently changing BOJ's yield curve target could erode market trust in BOJ's target, destabilise markets
  • It would be very problematic to raise yield curve target in near future with inflation still low
  • BOJ likely to face difficulty buying bonds if it continues current pace of bond buying