Business / Economy Jul 25, 2023
BOJ set to stick with easing as markets see clock ticking on yield control
Since taking the helm in April, Gov. Kazuo Ueda has repeatedly pushed back against the idea that a major pivot on policy is looming.
Since taking the helm in April, Gov. Kazuo Ueda has repeatedly pushed back against the idea that a major pivot on policy is looming.
Hideo Hayakawa, who is also a former BOJ chief economist, said that the central bank must raise its inflation outlook for this fiscal year to match reality.
The officials say inflation is running stronger than expected, a factor that raises the chance of the BOJ upgrading its inflation forecast in a quarterly economic outlook report in July.
The BOJ will refrain from changing its "yield curve control" program while speculation continues to swirl that the prime minister will call a snap election, according to an ex-board member.
The remarks leave room for the bank to be nimble about how and when it will be convinced about the prospect of price gains.
The FSA asked lenders to prepare crisis management manuals and examine their liquidity and risk management systems, sources have said.
Makoto Sakurai, who has known Bank of Japan governor nominee Kazuo Ueda for decades, sees little chance of a big policy shift at Ueda’s first policy meeting.
With the nomination of a new governor likely to come next week, several party members said there will be opposition within the party if Kishida chooses Hirohide Yamaguchi.
The official said Japan is on track to break away from an entrenched deflationary mindset as it moves away from being an economy of zero inflation.
A historic accord that ties the Bank of Japan to a 2% inflation goal is approaching its 10th anniversary amid speculation it may be revised to support a change of direction.