BOJ Board member Takehiro Sato speaking at a meeting with business leaders in Yamanashi Prefecture:
- Want to monitor whether big market repricing, unexpected moves emerge in markets when Fed rate hike timing becomes clear
- Essential to examine effects, side-effects of qqe, ensure demerits don't outweigh merits
- Somewhat worried about outcome of BOJ's bond market survey which showed market participants concerned over dwindling market liquidity
- Will be hard for BOJ to control long-term rates once markets doubt government's resolve over fiscal discipline
- Efforts to restore Japan's fiscal health crucial for success of QQE, including exit from stimulus programme in long run
- BOJ strongly hopes government steadily proceeds with steps to create sustainable fiscal structure in Japan
- Sustainability of BOJ's JGB purchases may become an issue if it continues buying at current pace while investors reduce jgb holdings to least possible extent
Headlines via Reuters
