Bank of Japan Deputy Governor Uchida gave a speech in Nara City, stating that the probability of achieving the 2% price target, which is a condition for changing large-scale monetary easing measures, is gradually increasing, and tentatively lifting the negative interest rate policy. However, he expressed his intention to maintain an accommodative financial environment.
Regarding the price stability target of 2%, Deputy Governor Uchida said, ``While there is still a high degree of uncertainty about the future, the probability that the outlook will be realized is gradually increasing.''
``If we can foresee the sustainable and stable realization of the 2% target, large-scale monetary easing will have fulfilled its role, and we will consider revising it.'' He indicated that he would consider changes in policy after examining such data.
He then stated, ``Even if negative interest rates were lifted, it is unlikely that interest rates would continue to rise after that, and we would have to maintain an accommodative financial environment.''
Furthermore, when considering a review of the framework of yield curve control, which is the pillar of current monetary policy along with the negative interest rate policy, we must carefully ensure that the amount of government bond purchases does not change significantly or that interest rates do not rise sharply. We also presented ideas for responding to this.
In the financial market, there is a growing view that the Bank of Japan is nearing the time to take a change in its monetary easing measures, such as lifting its negative interest rate policy, and there is growing interest in the monetary policy meeting to be held next month.