Bank of Japan Deputy Governor speaking:
- Fed's average inflation target has aspects in common with BOJ's policy thinking
- BOJ will take into account debate, experience of overseas central banks
- BOJ's March policy examination will start out with assessment on how YCC, QQE have affected economy, prices
- what's important is to look at real interest rates
- it will likely take quite a long time to achieve 2% inflation
- no need to overhaul BOJ's 2% inflation target, YCC framework in March policy examination
And, even more:
- March policy examination will look at operations, asset purchases based on assumption we will continue with YCC and QQE
- policy examination will seek to minimise cost of policy as much as possible, conduct monetary easing in effective manner
- must ensure BOJ can respond in timely fashion to any changes in economic, price, financial developments as monetary easing is prolonged
- March policy examination won't lead to withdrawal of monetary stimulus
- Japan's economy picking up as a trend though in severe situation due to pandemic
- Japan's job, income conditions will remain under pressure but likely to improve as domestic, external demand pick up
- Japan's economy expected to improve moderately as a trend but downside risks are big
- don't see signs japan is slipping back into deflation
- watching with utmost attention how fx moves affect prices
