IMF’s proposal to set price target in band is one idea, but our goal is to achieve 2% inflation.
Now is time to watch developments, don’t see immediate need for active policy response.
If economy faces rapid, severe downturn, BOJ may need to deploy all tools available.
If downturn in economy is fairly small, BOJ may not necessarily need to deploy all available tools.
What tools BOJ should use to fend off shock depends on economic development at the time.
It’s true yield curve is quite flat, when asked about imf’s proposal to target shorter maturity than boj’s current 10-year yield target.
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