Due attention has to be paid to easing side effects.
- BoJ can impact rates even if JGBs to buy become scarce
- Can achieve same rate with smaller amount of JGB buys
- Best yield curve can’t be formed with JGB amount as target.
- BOJ have to achieve most appropriate interest rate level while keeping side effects to minimum
- Possible to continue to facilitate formation of yield curve in way deemed most appropriate for achieving 2% price goal.
- Speech at the Central Banking Seminar Hosted by the Federal Reserve Bank of New York
- 20 and 30 year JP yields rising a notch to July highs
USDJPY is down 10 pips to 112.92, but not sure if the market takes this as a bit of a watering down of Boj’s resilience,just a bit of USD softness across the boarder again NK threatening an
“unimaginable strike” on US targets as the Korean peninsula drills get underway.
I’ll go fo the latter then .
Full text of the speech can be found here