BoJ board member Goushi Kataoka criticized the central bank’s recent move to allow 10 year JGB yield to fluctuate in a larger range of -0.1% to 0.1%. He said in a speech that “there’s no need to allow long-term interest rates to move in a wider range at a time when the BOJ is cutting its inflation forecasts.” He added that “allowing long-term rates to rise at a time inflation and inflation expectations aren’t heightening much could delay achievement of the BOJ’s price target.” Also, Kataoka warned “global trade frictions are intensifying and there’s no room for complacency”.

Kataoka is a known dove who dissented the decision to keep policy unchanged in every meeting since joining the board in 2017. Instead, he persistently pushed for more aggressive easing, targeting to keep JGB yields at 0% beyond 10 year maturity.

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