- BoJ Governor Ueda: Will continue massive bond buying even under new operation decided last week
Market news
6 November 2023
BoJ Governor Ueda: Will continue massive bond buying even under new operation decided last week
Bank of Japan (BoJ) Governor Kazuo Ueda addressing a press conference in Nagoya reiterated to patiently maintain monetary easing to support economic activity.
Key Quotes:
- Japan's economy recovering moderately.
- Japan's economy is likely to continue recovering.
- Long-term rates may rise somewhat but what's important is to look at the real interest rate that takes into account inflation expectations.
- Even if long-term rates rise, real interest rates will move in negative territory so monetary conditions will be sufficiently accommodative.
- There is uncertainty on whether Japan will see the positive cycle of wage and inflation, as we predict.
- We will patiently maintain monetary easing to support economic activity.
- We will continue massive bond-buying even under the new operation we decided last week.
- We will conduct nimble market operations when interest rates rise, depending on the level and speed of moves of long-term rates.
- Even if long-term rates come under upward pressure, don't expect the 10-year JGB yield to sharply exceed 1%.
- Under YCC, we need to carefully weigh the effect of the policy in stimulating the economy, and the side effects.
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