Bank of Japan Governor Haruhiko Kuroda confirmed during the press conference that the commitment to the inflation target was strengthened with prior guidance. His most prominent comments were as follows:
- Bond yields are allowed to move in the + 0.1% range and -0.1%.
- MPC member Kataoka opposed the forecast report referring that prices don't rise to 2%.
- Monetary policy will be adjusted as needed to keep price growth momentum around 2%.
- Inflation target was kept unchanged at 2%.
- I do not think the current policy was wrong.
- The government bond buying function will improve by allowing more flexible moves.
- Today's decision aims to make the monetary facilitation program more sustainable.
- Expectations are that the Bank of Japan is on its way out of the current policy or raising interest rates.
- I do not see big problems with financial intermediation.
- There are no plans to continue expanding the yield on 10-year bonds.
