BoJ open to tweaking YCC this year if wage momentum holds – Reuters
Citing five sources familiar with the Bank of Japan’s (BoJ) thinking, Reuters reported on Thursday, is open to mulling over the idea of making adjustments to its controversial bond yield control policy later this year.
Key takeaways
“The preferred approach, for now, is to stay the course, which means the bank will make no major immediate changes to YCC and its dovish policy guidance.”
“Given looming overseas economic risks, it’s appropriate to maintain ultra-loose monetary policy now.”
“The BOJ must avoid dampening public sentiment” by sending a message that could be interpreted as an early approach of an exit.”
“Japan’s wage dynamics appear to be changing. It’s possible for 2% inflation to be sustainably met.”