MNI BRIEF: Cannot Clarify BOJ Policy Removal Order - Ueda

Bank of Japan Governor Kazuo Ueda said on Thursday that he cannot clarify the order policymakers would remove yield curve control and negative interest rates in moving toward the normalization of easy policy.

Ueda told lawmakers that the order will depend on economic and price conditions when the BOJ can foresee the achievement of 2% price target, adding the central bank will continue with negative rates and the the YCC framework until hitting the bank’s 2% target was in sight.

Ueda also said whether a virtuous cycle between wages and higher prices is a crucial factor in realizing the 2% target and wage negotiation next spring will be one factor in assessing its strength. Stronger-than-previous corporate price-setting behavior has been seen and the BOJ is monitoring whether this continues, he added.