Comments by BOJ board member, Hitoshi Suzuki
- If BOJ were to ease in the future, need to ensure the merits outweigh demerits
- Don't need to be too rigid about range of 10-year JGB yields
- Yields might be somewhat extreme currently but may normalise over time
Their stance on further easing is well-known at this point considering their lack of ammunition. With regards to yields, I reckon they don't have much choice but to allow it if the global trend is driving yields downwards.
The BOJ would prefer to keep it around +/- 0.20% but we're already seeing yields run lower towards -0.28% as of today:
