Would adjust policy in response to external shocks – BOJ’s Sato

FXStreet (Mumbai) - At a separate event in Nara this Monday, BOJ board member Mr. T. Sato spoke on the monetary policy as well the inflation outlook, noting the following:

Hard to judge when BOJ's JGB buying will approach its limits

A low flat yield curve makes JGB purchases more difficult

JGB purchases are smooth now, will not immediately become difficult to purchase JGBs

Negative interest rates have merits and demerits for policy and markets. Need to think about both

No specific plan for tapering BOJ policy now

Would co-operate with adjusting policy in response to something like Lehman shock or EU debt crisis

Doesn’t think oil price decline having much impact on inflation expectations

Not too worried about oil price decline

Inflation expectations riding overall due to changes in corp, household sectors