BOJ’s Sato: Agree with current easing framework in principle

Bank of Japan (BOJ) board member Sato crossed the wires last minutes, via Bloomberg, speaking at a meeting with business leaders in Tokushima.

Key Points:

Policy should not be bound by 80tln yen JGB purchase figure

Market participant price outlook is not so bullish

Natural to think purchase size of JGBs will gradually drop

Natural to think JGB amount to drop if 0% yield goal maintained

Agree with current easing framework in principle

Most appropriate yield curve should be a little steeper

Long term rates face upwards pressure if CPI exceeds forecasts