BOJ's Amamiya and Wakatabe: Priority is hitting inflation target as soon as possible

Author: Justin Low | Category: Central Banks

More comments by BOJ deputy governors Amamiya and Wakatabe

  • Amount of bond purchases changes under yield curve control policy (A)
  • BOJ is aiming to hit inflation target as soon as possible (A)
  • Important to achieve 2% inflation target at earliest possible time (W)
  • Need to see costs and benefits of easing policy comprehensively (W)
  • There are further easing steps (W)
  • No need to consider a rate hike now (A)
  • Doesn't rule out adjusting rates before hitting 2% inflation target (A)
  • Wants to discuss if it is possible to hit 2% inflation target with YCC in next meeting (W)
  • BOJ has implemented most advanced policies in the world (A)
  • Deflationary mindset must be altered (A)
Wow, a surprising comment by Amamiya.

USD/JPY sent lower on the back of that bolded comment. It's the same one Kuroda backtracked earlier this month, so you have to wonder how much of it is taken out of context for the time being.

USD/JPY down to 106.15 now from 106.40 levels, dragging along other yen crosses lower as well.

It's not likely Amamiya will undercut Kuroda so the chances of the headline comment being out of context is quite likely. The full sentence appears to be that Amamiya is saying that "in theory" it is possible to adjust rates before hitting the 2% inflation target.

Otherwise, be prepared for more backtracking. But yen bulls won't care either way, it's enough to fuel another move in the yen for the time being.

"Oh wait, I think I copied the wrong speech".