Bank of Japan Governor Kazuo Ueda said changing the Bank's policy target to the five-year bond yield, from the current 10-year zone, would be among options if it were to modify its yield curve control (YCC) policy in the future.
- falling raw material costs likely to slow inflation in coming months
- BOJ must avoid tightening monetary policy prematurely to ensure Japan sustainably achieves its 2% target
- the BOJ could make tweaks to YCC "if the balance between the benefit and cost of the policy shifts."
- "If the BOJ were to modify YCC in the future, there are various ways of doing so," he said, adding that shortening the duration of bond yields it targets to the five-year zone from the current 10-year zone "could be among options."
- "But I won't comment on whether we would definitely do so, how likely this could happen, or under what conditions the BOJ would see this option as desirable,"
Adam had more on this earlier, here: