BOJ must consider trade-off between economic stimulus effect and
market function, in setting allowance band for 10-year yield target
What’s most
important is to ensure momentum for wage growth becomes trend, by
maintaining easy policy
Need to carefully gauge for now whether the ‘norm’ for inflation and
wages is changing
Service prices are
rising in Japan but impact of wage pressure not so big yet
That ‘smooth as a whole’ comment is a little unclear. I’m guessing he is referring to the fewer distortions seen since the BOJ widened the tolerance band for 10 Year JGBs to trade +/-50bp from around zero (from prior +/-25).
