BOJ monetary policy board member Noguchi speaking
- Says Japan's economy is to recover moderately
- the global economy and markets are a risk to Japan's outlook
- the shape of the yield curve is now smooth as a whole
- new guidance shows the BOJ's strong commitment to patiently keep easing
- The inflation expectations of the Japanese public are yet to be anchored at 2%
- BOJ must consider trade-off between economic stimulus effect and market function, in setting allowance band for 10-year yield target
- What's most important is to ensure momentum for wage growth becomes trend, by maintaining easy policy
- Need to carefully gauge for now whether the 'norm' for inflation and wages is changing
- Service prices are rising in Japan but impact of wage pressure not so big yet
That 'smooth as a whole' comment is a little unclear. I'm guessing he is referring to the fewer distortions seen since the BOJ widened the tolerance band for 10 Year JGBs to trade +/-50bp from around zero (from prior +/-25).
