Kataoka is a BOJ monetary Policy Board member. Even on the BOJ board he stands out as a dove!
He has been a dissenter in favour of further easing. Dovish comments from a dave, so not much yen response.
Comments:
- BOJ is ready to ease without hesitation if needed
- BOJ must deepen negative rate to make shape of yield curve more accommodative
- BOJ must strengthen its commitment on easy policy to be more effective in heightening inflation expectations
- one idea is for BOJ to promise to act if underlying inflation deviates from a certain range from its 2% target
- Japan has yet to completely emerge from low growth, low inflation and low interest rate environment
- My belief is that it is very important for govt, BOJ to coordinate on policy in sustained manner to end low growth, low inflation
- Stimulus effect on economy will be maximized if flexible fiscal policy is accompanied by bold, further monetary easing
- Room for BOJ to review its monetary policy framework, re-examine effect of its policy
