FACTBOX-Key quotes from Japan policymakers on economy, yields

(For more stories on the Japanese economy, click [ID:nECONJP])

TOKYO, Dec 21 (BestGrowthStock) – The Bank of Japan may use the board
meeting ending on Tuesday as a chance to soothe bond market
jitters, by assuring that it is closely watching a recent rise in
yields, but is expected to keep monetary policy on hold as it
scrutinises the impact of its new asset buying scheme.

With the yen well off its 15-year high against the dollar hit
last month, the central bank feels no imminent need to top up its
asset buying programme put in place just two months ago. It will
instead focus on how weakening overseas growth and rising
Japanese bond yields could affect the export-reliant economy.

Following are recent key quotes by BOJ and government
officials on monetary policy and the economy.

FINANCE MINISTER YOSHIHIKO NODA, Dec 17, in news conference

“It’s important to pay close attention to moves in the bond
market, just as I would for currencies or stocks …

“This could potentially impact how we estimate debt servicing
costs, so I want to watch developments closely.”

BOJ BOARD MEMBER YOSHIHISA MORIMORTO, Dec 9, in news
conference in Saitama

“If downside risks become stronger and economic and price
conditions deteriorate, we need to consider the necessary policy
response and in doing so, we need to compare the benefits and
drawbacks of any measures we take.

“Japanese long-term rate rises seem to be tracing U.S. market
moves … At present, I don’t think the rise in long-term
interest rates is having a big negative impact on the economy.”

BOJ BOARD MEMBER MIYAKO SUDA, Dec 1, in news conference in
Yamagata

“Buying risk assets cannot be categorised as traditional
central bank policy … But I have in mind the possibility of
expanding purchases (of risk assets), taking into account the
costs and benefits.”

Asked if she considered including foreign bonds among assets
the BOJ buys with its asset purchase pool: “I did consider this
as an option, but I saw more cost than benefit under current
conditions. But that is not to say I’m ruling this out as an
option completely. The possibility is very low but not zero.”

BOJ GOVERNOR MASAAKI SHIRAKAWA, Nov 29, in news conference in
Nagoya

“There are slight differences in how each of the nine BOJ
Policy Board members views the economy but overall we judged that
the (upside and downside) economic risks are roughly in balance
in our October outlook report …

“At present, I don’t feel the need to change in a major
manner our judgment that economic risks are roughly in balance.

“Japan’s long-term rates have somewhat risen, reflecting U.S.
long-term rate moves … But the effects of the BOJ’s
asset-buying scheme have been visible in long-term rates and bond
spreads as well as rises in REITs (real estate investment
trusts).”

BOARD MEMBER SEIJI NAKAMURA, Nov 25, in news conference and
speech in Fukushima

“Overall, downside risks (to the Japanese economy) seem
somewhat stronger than upside risks.”

“There are worries … sovereign debt problems in peripheral
Europe could affect the European economy by triggering spikes in
bond yields and worsening sentiment.”

SHIRAKAWA, Nov 5, in news conference

“Risk factors have remained unchanged from those pointed out
in our outlook report. On the economy, there are upside risks
from strengthening of emerging and commodity-exporting countries
while attention should be paid to downside risks as high
uncertainty remains, mainly in the United States …

“These risk factors regarding the economy and prices are
balanced on both the upside and downside.”

“If economic and price conditions deteriorate in the future
and if we judge effects (of the asset-buying scheme) will beat
side-effects after examining them, it would be a strong option to
expand this fund to further bring down longer market interest
rates and reduce the risk premium.”
(Reporting by Rie Ishiguro; Editing by Edmund Klamann and Joseph
Radford)

FACTBOX-Key quotes from Japan policymakers on economy, yields