BOJ board member on the wires

  • it’s BOJ policy to keep interest rates on downward path even if there is upward pressure from recovery expectations
  • BOJ will continue to pursue flexbile market operations
  • recent rise in US interest rates and Japanese stock prices my have contributed to rise in JGB yields
  • BOJ is firmly committed to QE as long as needed to achieve 2% inflation target

USDJPY higher at 101.96

  • still premature to design smooth exit strategy that makets can anticipate
  • BOJ has framework of flexible inflation target. It won’t guide polict rigidly to achieve target at any cost
  • still see more downside risks from overseas economies
  • Japan must constantly pursue structural and regualtory reforms to reduce risk of rise interest rates
  • CPI growth likely be around 1% later this year/next year, wages seen rising around Spring 2014

USDJPY up to 102.02 on the comments, suggesting QE in place for a while yet.