The Bank of Japan (BoJ) Board Member Kataoka is back on the wires now, via Reuters, speaking again on the monetary policy in Yokohama.
Key Points:
Doesn’t see any significant demerits emerging from easing policy.
BoJ’s July decision is neither an expansion or withdrawal or stimulus.
It is more of a strengthening of the framework.
ETF purchases are market dependent.
It depends on the risk premium situation.
Doesn’t see problems in financial markets now.
The biggest risk to markets that could be created by monetary policy is to allow deflation to be prolonged.
Seeking to guide super-long bond yields lower will help finance government spending.
Central bank needs to strengthen commitment to price goal.
Economy faces increased risks going forward.
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