There is “no plan to modify the Bank of Japan’s (BOJ) monetary policy,” the central bank’s Masazumi Wakatabe said in a statement on Thursday.

Key quotes

“Don't see any problem with recent moves in 10-year JGB yields as they are moving within the 50-bps range set around BOJ’s 0% target.”

“BOJ ready to ease policy further if downside risks heighten, but now is not the time to debate doing so.”

“BOJ could cut rates if downside risks to economy heighten. “

“Expected decline in monetary base will likely prove temporary.”

“Current inflation seen in Japan isn't driven just by cost-push factors, also reflects solid demand.”

“Hard to achieve BOJ’s 2% price goal with cost-push inflation alone.”

Market reaction

USD/JPY is trading 0.07% on the day, at 114.52, underpinned by the rebound in the US dollar and the Treasury yields.