• When achievement of 2% inflation is stably and sustainably in sight, we will seek exit from negative rates, yield curve control and other large scale monetary easing steps
  • As for the order of phasing out these various tools, it will depend on the economic, price, and financial conditions at the time
  • It is possible to control short-term rates at appropriate level by paying interest on reserves parked with the BOJ
  • If inflation accelerates and warrants monetary tightening, it is possible to do so by raising rates without scaling back on BOJ bond holdings

You can't blame traders for reacting the way they did earlier in the day. The headline remark makes it sound like they are still not yet seeing that the price target "is in sight". That could change on the outcome of the spring wage negotiations or it could even drag on to April. But the key thing here is that there is ambiguity. And that is something that traders do not like.