BOJ Dep Gov Uchida says will maintain YCC to help continue easy monetary conditions

<p>Bank of Japan Deputy Governor Uchida in Japan's Nikkei media this morning:</p><ul><li>
Will maintain YCC from perspective of sustaining easy monetary
conditions
</li><li>Want to make
decision from perspective of how to sustain easy policy with eye on
impact on financial intermediation, market function, when asked about
likelihood of tweaking YCC
</li><li>Japan is seeing
signs of change in corporate wage, price-setting behaviour</li><li>
Risk of missing chance to hit 2% inflation with premature policy
shift is bigger than being too late in tightening monetary policy</li></ul><ul><li>
There is huge distance to ending negative rate, a decision that would
be tantamount to a 0.1% rate hike</li></ul><p>And, on the yen:</p><ul><li>
Rapid, one-sided yen declines are undesirable, fx must move stably
reflecting economic fundamentals</li></ul><p>-</p><p>Uchida here is not indicating a near-term change to YCC, but he isn't sounding overly emphatic on it. Keeping alive the chance of a YCC tweak at the next BOJ meeting. There are a few weeks until the meeting and plenty more comments to come before then. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.