Bank of Japan Douses Hopes for Easy Policy End, Wall Street Fears Global Spillover, Stronger Yen Lurking, Tokyo Offers Stability Amid Dim Office Market Views

The Bank of Japan (BOJ) has dismissed speculation that its recent policy adjustment signaled the start of a tightening cycle, emphasizing that its flexible approach to long-term bond yields is aimed at sustaining its ultra-easy monetary policy position. Deputy Governor Shinichi Ichida stated that the BOJ does not have an exit from monetary easing in mind and that there is still a long way to go before considering raising short-term interest rates. The BOJ's yield curve control, part of its ultra-easy monetary policy, is intended to stimulate growth and achieve its 2% inflation target. Ichida highlighted the need to strike a balance between the positive effects and costs of monetary policy.