BoJ Governor Kuroda told the parliament today that there is “absolutely no plan” to raise the yield target under the Yield Curve Control for now, as inflation is still distant from 2%. He also explained that removing the time frame to meet the 2% inflation target is not necessarily related to the side effect of monetary policy on bank profits.
Regarding YCC, Kuroda said bond purchases are more sustainable under the framework, as the central bank has more flexibility. And, it’s be able to maintain long term year near 0% with smooth operations in JGB purchases.
