- It is taking some time for market function to improve
- December decision may have had effect of weakening stimulus impact
- But even so, stimulus is sufficient because inflation expectations are heightening
- Must strike balance to avoid weakening stimulus impact (when asked about further widening YCC band)
This lines up with what we've heard recently from the BOJ and don't expect anything to change so long as Kuroda is still at the helm; which won't be long, up until 8 April.
