BOJ’s Kataoka: Cutting short-term rate target is most effective tool in stimulating economy

The Bank of Japan (BOJ) monetary policy board member and dissenter Kataoka is back on the wires now, commenting on various options likely as the next monetary policy outlook.

Key Quotes:

Cutting short-term rate target is the most effective tool in stimulating the economy, lifting inflation.

Will look at various factors, including side-effects of prolonged easing, in deciding whether to formally propose cutting short-term rate target at future rate reviews.

Looking at the current state of the yield curve.

Very important to hit price target quickly.

Would make policy proposal after sufficient mulling.