The bank will now allow yields to rise to around 0.5%, up from the previous upper limit of 0.25% on their range of movement, according to a policy statement.
Naoki Tamura has said it’s hard to define the "right time" mechanically, or decide what would make it necessary because it depends on inflation, wages and the economy.
Explaining the refusal to shift gears is getting harder and such doggedness risks triggering a fresh downward spiral for the embattled yen.
Ex-BOJ executive thinks there is a considerable chance that in a year or so the BOJ’s topic of discussion will shift to when the price target can really be achieved.
The government’s action last week came almost directly after the BOJ’s ultralow rates stance fueled further yen weakening, triggering doubt over the authorities’ unified stance.
Views on Japan’s inflation dynamics are shifting among some experts after more than a decade of deflation and price weakness.
"This isn’t the time for a drastic rate hike, so there is a limit on what the BOJ can do now,” Yuri Okina has said.
The Ministry of Finance has started looking into ensuring there’s sufficient liquidity in the market, said Michio Saito, who heads the department that oversees debt issuance.
Bank of Japan Gov. Haruhiko Kuroda is in no mood to give up on stimulus and his ultraloose monetary policy, according to people familiar with the matter.
The new economic projections will be released together with the bank’s policy decision at the end of the meeting.
