Former Deputy Chief Says BOJ May Tweak Forward Guidance

The transcript discusses the Bank of Japan's (BOJ) current stance on Yield Curve Control (YCC) and potential policy changes under Governor Hueda. It explores the possibility of tweaking forward guidance, especially in light of COVID-19's reclassification. The discussion highlights inflation trends, with the BOJ aiming for a 2% target, and considers the future of YCC under Governor Weather. The transcript also compares the approaches of different governors and the challenges faced by the BOJ in managing inflation and policy continuity.

What is the main reason Governor Hueda is hesitant to change the YCC policy?

• The inflation rate has reached the target.

• The yen is too strong.

• The inflation rate is not sustainably at 2%.

• The global economic situation is stable.

What potential change is discussed regarding the BOJ's forward guidance?

• Reducing the inflation target.

• Increasing interest rates immediately.

• Complete removal of forward guidance.

• Linking forward guidance to COVID-19.

How has the BOJ categorized COVID-19 in its recent statements?

• As a non-issue.

• As a Class 5 emergency.

• As a Class 1 emergency.

• As a Class 2 emergency.

What is the BOJ's current stance on inflation outlook?

• Inflation is expected to stabilize at 2%.

• Inflation is expected to remain above 3%.

• Inflation is expected to peak and then decrease.

• Inflation is not a concern for the BOJ.

What is a key factor in the BOJ's decision-making process regarding inflation?

• Data dependency.

• Global economic trends.

• Public opinion.

• Political pressure.

How does Governor Weather's approach to monetary policy compare to his predecessor?

• He will focus solely on short-term goals.

• He intends to ignore previous policies.

• He aims to maintain continuity.

• He plans to drastically change the policy.

What is a potential challenge Governor Weather might face if inflation rises unexpectedly?

• Reducing interest rates further.

• Ignoring inflation changes.

• Clamping down on inflation.

• Increasing the inflation target.