Incoming Bank of Japan Deputy Gov. Shinichi Uchida on Tuesday brushed aside the chance of an immediate overhaul of its ultraloose monetary policy, suggesting that any review of its policy framework could take about a year.
Uchida, a career central banker, said the BOJ should not modify its ultraeasy policy just to address the side effects of prolonged stimulus such as market distortions caused by the bank's heavy intervention to defend its yield cap.
"The BOJ must maintain monetary easing. It shouldn't modify easy policy just because there are side effects. Rather, it must come up with ideas" to mitigate the costs and help sustain stimulus, Uchida told an Upper House confirmation hearing.