BOJ’s new deputy governor says will examine data thoroughly in guiding policy By Reuters

By Leika Kihara and Tetsushi Kajimoto

TOKYO (Reuters) – Bank of Japan (BOJ) Deputy Governor Shinichi Uchida said on Wednesday the central bank will make a comprehensive assessment of various data, including developments in trend inflation, in guiding monetary policy.

Markets are rife with speculation the BOJ could tweak or end its bond yield control policy when governor Haruhiko Kuroda’s second, five-year term ends in April.

“Trend inflation is an extremely important factor for us in judging on achievement of 2% inflation target in stable manner … We will make comprehensive judgment by looking at various price indicators,” Uchida said at his first appearance in parliament since assuming the post earlier this month.

“We will strive to communicate firmly with markets to gain understanding” towards our policy, he said.

During the same parliament session, Finance Minister Shunichi Suzuki said it was important for the central bank to communicate with markets to offer some predictability on the policy outlook.

Kuroda has faced criticism from some investors and lawmakers for wrong-footing markets with the BOJ’s shock decision in 2016 to adopt negative interest rates, and last December’s decision to widen the allowance band around its yield target.