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BOJ's Iwata says negative rate policy had flattened yield curve more than expected

BOJ board member Iwata out on the wires a few moments ago 7 Dec

  • will make a policy decision based on how any change in bond-buying pace could affect inflation expectations
  • BOJ may accelerate bond purchases if momentum to hit 2% inflation weakens but may slow buying if inflation approaches 2%
  • waivered on whether to vote for BOJ decision to adopt neg rates given potential neg impact on bank profits
  • current long-term rate moves don't pose neg impact on economy's momentum to hit 2% inflation target
  • BOJ may need to expand asset buying to push down yields
  • if long term rate rises are driven by improvements in economy BOJ may change amount of JGB buying

USDJPY 114.26 tightly bound for the moment.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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