Wakatabe: I'd Be Very Surprised if BOJ Changes YCC

The transcript discusses the Bank of Japan's (BOJ) current stance on Yield Curve Control (YCC) and the potential for policy tweaks. Governor Hueda has indicated no immediate changes due to inflation not reaching the 2% target sustainably. However, there is a possibility of adjusting forward guidance, especially in light of COVID-19's reclassification. The BOJ is cautious about inflation trends, expecting it to peak this year but remain data-dependent for future decisions.

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

• The economy is growing too fast.

• There is political pressure to maintain the status quo.

• The unemployment rate is too high.

• The inflation rate has not reached a sustainable level.

How has the classification of COVID-19 changed according to the BOJ's recent statements?

• From Class 4 to Class 1

• From Class 1 to Class 3

• From Class 3 to Class 4

• From Class 2 to Class 5

What is the BOJ's stance on forward guidance in the context of COVID-19?

• They plan to remove it entirely.

• They will ignore COVID-19 in future guidance.

• They might adjust it but not remove it.

• They will strengthen it significantly.

What is Governor Weather's expectation for inflation by the end of the year?

• It will decrease to below 1%.

• It will stabilize at 2%.

• It will peak and then drop to about 1.5%.

• It will remain above 3%.

What is the BOJ's approach to inflation targets in the long term?

• They aim for a stable 3% target.

• They aim for a flexible target based on economic conditions.

• They focus on a sustainable 2% target.

• They have no specific target.