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Bank of Japan (BOJ) monetary policy board member Goushi Kataoka emphasized the central bank’s desire to get higher inflation.

Key quotes

BOJ should clarify its intention of cutting rates, buy JGBs aggressively.

By cutting rates the Bank of Japan can ease the burden on companies.

The bank must promise to act under specific conditions, and stress it will not tolerate deflation.

One idea is for the Bank of Japan to promise to ease further if prices deviate from its target, to tie its policy rate decisions more specifically to its price goal.

By easing further to contain price falls the BOJ can achieve its price goal quicker and minimize the side-effects of its easy policy.

 

more to come …

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