BOJ's Amamiya: It is clear that interest rates will stay at current or lower levels
Amamiya reaffirms that cutting rates further is still an option
Just some added platitudes by Amamiya really. There isn't anything in there that deviates from the usual BOJ script and the March review should reveal more of the same.
- BOJ will cut rates as needed, if necessary
- But appropriate to account for impact of financial intermediation when cutting rates
- ETF purchases has had positive impact on markets
- Risks to the economy skewed to the downside
- Japan no longer in deflation, but will take time to reach 2% inflation target