Bank of Japan governor Kuroda now touching on monetary policy
- BOJ's strategy has already changed in September 2016 to accommodate financial stability as well, not just economic stability
- Current yield curve control (YCC) has been quite successful
- No change to message on YCC
- BOJ concluded in September 2016 that too flat a yield curve is not good
- YCC program has not created any problem for financial stability
- BOJ will continue extremely accommodative policy
- Will immediately act if momentum toward achieving price target is at risk
- Global economic outlook still fairly strong, not too much to be concerned
- BOJ will carefully monitor global economic situation and potential risks
- Particularly concerned by protectionist tendency in some countries as well as geopolitical risks
Status quo statements so far from Kuroda. It seems like he still believes they will be able to reach their target by fiscal year 2019.
It will be tough for the BOJ even if they continue down this path. Unemployment rate is nearing lows we haven't seen for about 20 years but there is just a consistently persistent weak growth in wages and that is failing to drive inflation higher.
The latest comments here are likely to be that the upcoming BOJ meeting on 21 December will see little change and no "comprehensive assessment" towards current policy. Hence, there should not be a significant change/announcement then.
