BoJ Executive Director Shinichi Uchida told the parliament today, “Japan’s economy is still in the midst of recovering from the pandemic’s impact. It is recently under pressure from rising commodity prices… It’s therefore important for the BOJ to continue supporting economic activity with powerful monetary easing.” He also said BoJ has no plan to adjust the 50bps band allowed for 10-year JGB yield to fluctuate around 0%.
Separately, Finance Minister Shunichi Suzuki said after a cabinet meeting, “stability is important and rapid moves as seen recently are undesirable,” referring to Yen’s exchange rate. But he emphasized that any actions would follow the practice agreed with G7 partners.
