BOJ to continue easing until sustainable inflation is achieved, official says

Bank of Japan Deputy Gov. Shinichi Uchida said Wednesday that the central bank would maintain an easy policy stance despite its recent decision to make its yield curve control more flexible.

“The bank’s decision to conduct yield curve control with greater flexibility aims at patiently continuing with monetary easing,” Uchida said in a speech. “We do not have an exit from monetary easing in mind.”

Last week, the BOJ decided to let the 10-year Japanese government bond yield rise and set 1% as the new hard cap, up from 0.5% previously.

Uchida also rejected the possibility of abolishing the negative interest-rate policy immediately. “There is still a long way to go before such decisions are made” because sustainable 2% inflation is not in sight yet, he said.

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