Bank of Japan Deputy Governor speaking:

  • Fed's average inflation target has aspects in common with BOJ's policy thinking
  • BOJ will take into account debate, experience of overseas central banks
  • BOJ's March policy examination will start out with assessment on how YCC, QQE have affected economy, prices
  • what's important is to look at real interest rates
  • it will likely take quite a long time to achieve 2% inflation
  • no need to overhaul BOJ's 2% inflation target, YCC framework in March policy examination

And, even more:

  • March policy examination will look at operations, asset purchases based on assumption we will continue with YCC and QQE
  • policy examination will seek to minimise cost of policy as much as possible, conduct monetary easing in effective manner
  • must ensure BOJ can respond in timely fashion to any changes in economic, price, financial developments as monetary easing is prolonged
  • March policy examination won't lead to withdrawal of monetary stimulus
  • Japan's economy picking up as a trend though in severe situation due to pandemic
  • Japan's job, income conditions will remain under pressure but likely to improve as domestic, external demand pick up
  • Japan's economy expected to improve moderately as a trend but downside risks are big
  • don't see signs japan is slipping back into deflation
  • watching with utmost attention how fx moves affect prices