Bank of Japan coverage board member Naoki Tamura stated Wednesday that the central financial institution’s objective for sustainable 2% inflation seems to be lastly in sight after a decade of financial easing.
“I expect to have further clarity [on whether the bank can achieve the goal] around the January-March quarter next year based on the momentum for wage growth at that point and price data for the latter half of the year,” he stated at a gathering with enterprise leaders in Hokkaido.
In late July, the BOJ raised its cap for the yield on 10-year Japanese authorities bonds to 1% from 0.5%.
The 10-year yield is unlikely to hit 1% instantly, Tamura stated, and promised to cease extreme strikes in yields by stepping up bond purchases.
Source web site: www.marketwatch.com