BoJ Governor Haruhiko Kuroda said yesterday that widening of the allowed band for 10-year JGB yield was “definitely not a step toward an exit” of ultra loose monetary policy.
“The Bank will aim to achieve the price target in a sustainable and stable manner, accompanied by wage increases, by continuing with monetary easing under yield curve control,” he added.
“Labour market conditions in Japan are projected to tighten further, and firms’ price- and wage-setting behaviour is also likely to change,” Kuroda said. “In this sense, Japan is approaching a critical juncture in breaking out of a prolonged period of low inflation and low growth.”
