Ex-BoJ’s Hayakawa: BoJ is likely to raise its yield target within a year

Former Bank of Japan (BoJ) Chief Economist Hideo Hayakawa was on the wires earlier today, expressing his take on the BoJ’s monetary policy programme in an interview with Bloomberg.

Key Headlines:

BoJ is likely to raise its yield target within a year.

Inflation is accelerating faster than expected.

“The BoJ will adjust its target for 10-year government bond yields after gains in consumer prices excluding fresh food and energy (core-core, which is currently at 0.5%) reach 1 percent.”

"The hike won't trigger market turmoil because it's becoming almost consensus that the long-term yield target will be adjusted after the core hits 1 percent.”