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Bank of Japan: We do not have a pre-established timetable to abandon expansionary policy – ​​Ryozo Himino

He Deputy Governor of the Bank of Japan (BoJ), Ryozo Himinodeclared on Wednesday that he does not have in mind no pre-established calendar for exiting the expansionary policy.

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It is inappropriate to establish in advance a sequence of completion of the various means of monetary easing.

Apart from the evolution of wages and prices, consumption, investment in fixed capital and developments abroad must be taken into account as factors to decide when to abandon expansionary monetary policy.

We will have to make a decision at some point, given the mix of signals coming from the economy.

We are not sure how far we are from sustainably reaching our price target.

There is a possibility that the side effects of the expansionary policy will diminish with the exit.

CPI data from Tokyo showed signs of the impact of rising import prices dissipating.

It is said that the effect of monetary policy takes more than a year to fully manifest itself in the economy, so we patiently maintain the expansionary policy.

I do not have in mind a specific prediction as to when the BoJ may judge that a sustained and stable achievement of the price target can be foreseen.

Market reaction

USD/JPY moves away from highs of 147.40 and is currently trading at 147.18, almost unchanged on the day. The comments above fail to move the needle on the Japanese Yen.

Source: Fx Street

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