Kazuo Momma was head of monetary policy at the Bank of Japan. He was interviewed on Bloomberg TV today, Monday, July 4, 2022.
In short, he confirmed what Bank of Japan Governor Kuroda said that an easy policy will be maintained:
- likely to maintain its current monetary easing program “for many quarters to come”
- to ensure economic recovery
- pursue the Bank’s objective of 2% sustainable inflation
- “There are good reasons for the BOJ to stick to current yield curve control for the rest of this year or even beyond.”
YCC is under pressure. While the Bank has bought large amounts of 10-year JGBs and continues to do so, yields on other maturities have escaped higher than desired. The yen’s decline has dissipated over the past week as worries grow of a global recession and speculation of a Bank of Japan policy change soon.
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