Japan to maintain accommodative policy – govt official quotes BOJ’s Ueda

TOKYO  – The Bank of Japan (BOJ) will maintain accommodative monetary conditions for companies, Governor Kazuo Ueda was quoted as saying at a key government meeting on Wednesday.

While dollar/yen moves have been somewhat volatile due to U.S.-Japanese interest rate differentials, Japan’s long-term interest rates have moved sideways under the BOJ’s yield curve control policy, a Cabinet Office official quoted Ueda as saying.

“Market sentiment continues to improve,” Ueda said, according to the official, who briefed reporters on discussions at the meeting to approve the government’s monthly economic report.

While long-term borrowing costs are rising somewhat, interest rates for short-term borrowing and commercial paper are very low, Ueda was quoted as saying.

Ueda’s quoted remarks come ahead of a closely watched BOJ policy meeting that ends on Friday, where the board will produce fresh quarterly projections and debate how much progress Japan is making in sustainably achieving its 2 percent inflation target.

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