Investing.com - Bank of Japan board member Yutaka Harada said Wednesday the central bank should commit to ease further "without hesitation" if the global economy changed sharply, while adding that the added yield curve control aim announced in September will Japan "proceed steadily toward achieving the price stability target of 2%."
However, "If a situation arises in which it becomes difficult to achieve the target - for example, a significant change in the state of the global economy - I think that the bank should take additional easing measures without hesitation."
"I think it is necessary to make this commitment to the public, because at the time the BoJ terminated QE in March 2006, there might have been a misunderstanding that it would terminate the policy as soon as the rate of increase in the CPI became even slightly above zero percent," he said in a speech to business leaders.
Harada is one of the seven board members who agreed to change the monetary policy framework to focus on the yield curve rather than the monetary base target at the Sept. 20-21 meeting.