BOJ's Haru cautious on possible rise in JGB yields
"As the economy keeps improving and the fall in prices shrinks, and the market starts speculating that the BOJ will end its quantitative easing policy early, there is a chance that...longer term rates will begin rising," Hidehiko Haru, one of the policy board's nine members, said in a speech to business leaders in Aomori, Japan.
"It's natural for rates to rise as an economy recovers, but moves that stray from fundamentals could upset such a recovery."
He also repeated the BOJ's commitment to easy credit, saying the current policy framework would be kept in place until conditions set in October were met.
According to a separate report by Reuters, Haru also said on Thursday that while he was not in favour of setting a "price reference target" now, such a move could be an option in the future.
Haru also told reporters in the northern city of Aomori, according to Reuters, that he was not in favour of changing the BOJ's policy of keeping its ultra-loose policy framework until prices stabilise at or above zero, for example by raising the condition to one percent inflation.
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