BOJ's Kataoka: July's policy move could make BOJ's long-term yield target obsolete

Author: Eamonn Sheridan | Category: Central Banks

Goushi Kataoka, Member of the Policy Board

  • Chance low for Japan's economy to see momentum to hit price target heighten under current framework
  • Didn't see need to allow long-term yields to move more flexibly when boj was cutting price forecasts
  • July's policy move could make BOJ's long-term yield target obsolete
  • BOJ new forward guidance only states obvious, see need for clearer guidance tied to inflation, inflation expectations and output gap
  • Allowing long-term yields to rise when inflation still low could delay achievement of price target
  • BOJ must take steps to guide super-long JGB yields lower
  • Expect global economic expansion to weaken somewhat from next year and onwards


more to come  
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