All eyes are on the Bank of Japan’s next governor candidate, Kazuo Ueda, to figure out the nation's future monetary policy direction after a decade of the unprecedented easing that occurred under the current governor, Haruhiko Kuroda.
Ueda, an eminent scholar specializing in monetary policy, repeated his already expressed views at a Lower House confirmation hearing on Friday that the current monetary easing, namely the yield curve control (YCC), is appropriate and thus will be maintained until the 2% price stability target is stably achieved. YCC applies a negative 0.1% interest rate on part of banks’ excess reserves, and maintains 10-year JGB yields at around 0% with the target range of 0.5%.
Meanwhile, he also said that he will monitor the adverse impacts of the current monetary easing on bond markets, as well as impacts of recent offsetting measures.