The Bank of Japan is expected to stabilize bond yields over time, its flexible market operations and large-scale asset purchase program, the central bank policymakers said signal, it has no immediate plans to take new steps to quell market volatility.
Sayuri Shirai, the central bank among nine members of the Board who is a former IMF economist, said that this is a natural and desirable, bond yields in the next two to three years to gradually rise, the prospects for economic recovery and rising prices.
She also said the central bank has hinted that she was not considered necessary, the central bank's money market operations from the current offer to extend the maximum duration of one year - an idea that debate, but there are enough tools to deal with market volatility, not approved rate Tuesday comment.
"The Bank of Japan will continue to closely monitor market developments and flexible operation of the market, with market participants consider discussing the Bank of Japan is expected to short-term and long-term interest rates as a whole is stable," she told business leaders in Asahikawa, northern Japan.
Bank of Japan kept monetary policy steady on Tuesday at the new measures to quell the turmoil in the bond market to determine its April sufficiently massive monetary stimulus to revive the stalled economy and pull it out of chronic deflation.
Decided to contribute to a sharp sell-off in global stock markets, including Japan stocks because the stimulus from the central bank little prospect - particularly from the U.S. Federal Reserve Board - depressed mood.
Shirai sounded unaffected yen rally, Japanese stocks fell sharply on Thursday, he said, although the Bank of Japan will pay close attention to market trends, its massive asset purchase program's effectiveness will be improved over time.
"It's true increase volatility in the stock market, I hope that the stock price will stabilize," Shirai business leaders a news conference after the meeting said.
"We will continue easing monetary policy has been decided step, it should provide support (economy)."
Dollar fell more than 2% below 94 yen last Thursday, giving up most of its gains after the Bank of Japan's aggressive monetary easing activities on April 4 announced, uncertainty, when the U.S. Federal Reserve will taper their bonds purchase plan.
The Nikkei share average also fell more than 6% since April BOJ easing, a potentially unpopular Prime Minister Shinzo Abe Jin Sanan bold monetary policy and fiscal stimulus policies to improve the world's third largest consumer confidence index economies rely heavily on the development of recovery wiped benefits.
Economic recovery is intact
Japan's economic growth of 4.1% annual rate in the first quarter due to Abe's bold stimulus and a weaker yen, the country's competitive advantage merchandise.
Recent market volatility Japan's economic growth prospects may be clouded, although the Bank of Japan Shirai jammed think the economy will continue a moderate recovery, mid-year or so.
Expected future inflation and economic recovery will strive to push bond yields, despite the Bank of Japan's huge debt to buy and its strong commitment to ultra-loose policy will offset some of the upward pressure, she said.
In terms of price, Shirai warned that it will take quite a long time to reach the Bank of Japan's inflation target of 2%, in a country in deflation for 15 years.
"As for the price, I personally feel that we need to focus more downside risk," she said, expected sales tax hike next year could hurt household spending and prevent the company's rising costs passed onto consumers.
In April, the Bank of Japan's monetary stimulus introduced in the fierce commitment to its bond holdings sudden doubling in about two years to meet its inflation target in two years.
 



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