Bank of Japan (BoJ) Governor Ueda signaled that the monetary easing policy in Japan may continue.
Bank of Japan (BoJ) Governor Kazuo Ueda has signaled that the bank will not abandon monetary easing without changing its guidance on inflation targeting.
Ueda, who held a press conference in India, where the G-20 finance ministers and central bank governors’ meetings are held on Tuesday, said that if their assumptions that inflation will not reach the 2 percent target in a sustainable manner do not change, the general approach to monetary policy, namely easing policies, will not change.
Ueda said that the BOJ will evaluate the pace of Japan’s progress in achieving its 2 percent inflation target in a sustainable manner at each policy meeting and said, “We patiently maintained our extremely loose monetary policy under yield curve control (YCC).
MUFG Bank Ltd. In his speech, Japan Economist Takahiro Sekido said that Ueda still does not foresee sustainable inflation and tries to reassure the markets that monetary easing will continue. “However, this does not rule out the possibility of removing or adjusting YCC in the near future. I see the probability of this happening in July as 30 percent and in October as 70 percent,” he added.