Central Banks
BOJ’s Noguchi Flags Need for Early YCC Flexibility When Needed
- Board member says no need to rush adjustment for now
- Noguchi says important for base pay to grow close to 3% pace
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Bank of Japan board member Asahi Noguchi said yield curve control is difficult to maintain without acting early when changes are needed, a comment that may feed into speculation of further changes to come when the central bank meets later this month.
The BOJ’s move in July to allow more flexible movement in yields was a necessary measure that didn’t diminish the easing effects of policy, Noguchi told business leaders in Niigata, northern Japan on Thursday morning. With the move, the BOJ effectively doubled the ceiling on long-term yields to 1%.