Bank of Japan (BoJ) Governor Kazuo Ueda said in his parliamentary speech on Tuesday, “when achievement of 2% inflation stably and sustainably in sight, we will seek an exit from negative rates, YCC and other large scale monetary easing steps.”
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In what order we phase out various monetary easing tools will depend on economic, price, financial conditions at the time.
It is possible to control short-term rates at appropriate level by paying interest on reserves parked with BoJ.
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