<p>more to come</p><p> Ex-BOJ Deputy Governor Yamaguchi:</p><ul><li>BOJ boj must stand ready to tweak YCC next year if Japan's economy can withstand overseas economic risks</li></ul><ul><li> If BOJ were to tweak YCC, one idea would be to raise 10-year JGB <a href="https://www.forexlive.com/terms/y/yield/" target="_blank" id="bc27d1fa-0b41-4192-ac3a-48794fd4ff1e_1" class="terms__main-term">yield</a> target from current 0%</li><li>BOJ must be mindful that once <a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1" class="terms__secondary-term">inflation</a> expectations become entrenched, it is very hard to control them</li><li>BOJ must enhance flexibility of its monetary policy such as by removing commitment to keep increasing pace of money printing until inflation stably exceeds 2%</li><li>Don't see any merit to changing BOJ’s joint statement with govt at this moment</li></ul><p>Background to this is here:</p><p class="text-align-start vertical-align-baseline">Yen found strength in the very early hours of Asia on the back of a weekend report canvassing changes to the BOJ 2% inflation target once Bank of Japan Governor Kuroda leaves his role in April in 2023:</p><ul><li><a href="https://www.forexlive.com/centralbank/monday-morning-forex-open-early-indications-19-december-2022-boj-chatter-boosting-yen-20221218/" rel="follow" target="_self" class="article-link vertical-align-baseline">Monday morning forex open early indications – 19 December 2022 (BOJ chatter boosting yen)</a></li><li><a href="https://www.forexlive.com/centralbank/weekend-report-on-bojs-2-infaltion-target-more-flexible-ps-not-until-april-2023-20221218/" rel="follow" target="_self" class="article-link">Weekend report on BOJ's 2% inflation target: "more flexible" (ps. not until April 2023)</a></li></ul><ul><li><a href="https://www.forexlive.com/centralbank/japan-government-bonds-early-stocks-nikkei-futures-lower-after-weekend-boj-chatter-20221218/" rel="follow" target="_self" class="article-link vertical-align-baseline">Japan government bonds, early stocks (Nikkei futures) lower after weekend BOJ chatter</a></li></ul>
This article was written by Eamonn Sheridan at www.forexlive.com.
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