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Bank of Japan (BOJ) board member Sakurai said on Thursday expressed confidence the stimulative effect of yield curve control policy will boost inflation expectations and stressed the BOJ needs to hit the price goal at the earliest date possible.  

Key quotes (Source: Reuters)

  • BOJ board member Sakurai says monetary policy must seek to maintain as long as possible current tightened supply-demand conditions
  • Boj must aim to hit price goal at earliest date possible but that doesn’t mean it will do so recklessly
  • The stimulative effect of the yield curve control will heighten as inflation expectations, economy’s long-term growth strengthen
  • Boj must seek most appropriate policy with no preset idea with an eye on the balance of economy’s demand, supply
  • Undesirable for a specific timeframe, indicator to come under too much focus as monetary policy must take into account various uncertainties
  • Given weak inflation, now is time to patiently maintain the easy monetary policy
  • Leaving distortions in economy’s supply-demand balance unattended for long could cause unnecessary swings in economy
  • Boj must ensure prolonged easy policy does not destabilise financial system
  • Financial intermediation may be affected if financial institutions’ profits come under pressure from low rate environment