Bank of Japan Gov. nominee Kazuo Ueda said monetary easing should continue in support of the economy’s recovery, a comment that suggests he won’t seek an immediate change in policy if he is approved to helm the central bank.
At the second parliamentary hearing in the confirmation process, Ueda said the benefits of the BOJ’s stimulus outweighs its side effects, again reinforcing the view that he isn’t seeking a quick move away from a decade of massive easing.
Still, he acknowledged that some policy shifts had to come as a surprise to avoid speculation, a remark that may support the view of market players betting on change coming sooner rather than later. Some see the side effects from the BOJ’s yield curve control program as increasingly weighing on the functioning of the financial market.