June 13, 2017
TOKYO (Reuters) – The Bank of Japan will continue to pursue necessary monetary policy steps to stabilize prices, while keeping an eye on how they affect its financial health, a senior central bank official said on Tuesday.
A recent slowdown in the BOJ’s bond buying is due largely to the fact U.S. Treasury yields have stabilized and are exerting less upward pressure on Japan’s long-term interest rates, Masayoshi Amamiya, the central bank’s executive director overseeing monetary policy, told parliament.
“It’s hard to say now how a future exit (from the BOJ’s ultra-loose policy) could affect its financial health as that would depend on the pace of short-term rate hikes and what the yield curve would look like at the time,” he said.
(Reporting by Leika Kihara; Editing by Chris Gallagher)
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