Bank of Japan Monetary Policy Committee member Goushi Kataoka noted that there is a low chance to see the economy rallying momentum to price-targeting within the current monetary policy framework. His most prominent comments were as follows:
- The actions taken at the July meeting made the target of long-term bond yields unimportant.
- Allowing long-term higher yields when inflation is still low may delay the price target.
- Allowing long-term higher yields when inflation is still low may delay the price target.
- The bank should take action that will cause long-term decline in yields.
- The pace of global economic growth may slow down next year and beyond.
- The biggest risk is to allow deflation to erupt.
- We need to eliminate deflation altogether.
- Must adhere to the price target.
- The economy faces increasing risks in the future.
