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.