BOJ Oct summary: One member said YCC tweak would help smooth easy-policy exit

TOKYO : Tweaking the Bank of Japan’s bond yield control would mitigate its side-effects and help make a smooth exit from ultra-loose monetary policy in the future, some board members were quoted as saying in a summary of opinions at the October policy meeting.

“The likelihood of achieving the BOJ’s price target in a sustainable and stable manner seems to have risen since the July meeting. It’s therefore necessary for the BOJ to gradually adjust the degree of monetary easing down from its maximum level,” according to another opinion, the summary released on Thursday showed.

At the October meeting, the BOJ kept its ultra-low interest rate targets unchanged but tweaked yield curve control (YCC) to loosen its grip on long-term interest rates.