BoJ Deputy Governor Wakatabe talked dovish
BoJ Deputy Governor Wakatabe talked dovish, saying that the central bank wouldn't hesitate to hit the stimulus button if the outlook for achieving its 2% inflation target shifts. He said that current policy guidance, laid out in the most recent statement, allows for such an action. He also said that there is a risk that the anticipated growth pickup in the latter half of the year won't happen as soon as previously envisaged, and that there is a "significant" risk that the BoJ will have to change its baseline assumptions on the growth outlook. At the same time, Wakatabe emphasized that the BoJ won't simply follow Fed policy direction and that there was no current need to change the YCC (yield curve control) framework, and that the prevailing target range for 10-year yields was satisfactory.