Policy Board and Takehiro Sato

massive government bond: Though the Bank of Japan monetary easing is intended to put downward pressure on nominal interest rates across the entire yield curve through massive government bond purchases, such an effect has been diminishing gradually due mainly to reduced demand from investors to purchase bonds amid already low interest rates, he said, according to The Japan Times. It appears to me that the degree of difficulty in implementing QQE is rising, said Sato, who with three other policymakers voted against the nine-member Policy Board decision to expand aggressive monetary easing last October. The market outlook on economic activity and prices has actually been revised downward, and therefore there is a lack of persuasive evidence of a further rise in inflation expectations, Takehiro Sato said in a speech to business leaders in Kofu, Yamanashi Prefecture. But he said the underlying trend in inflation is being firmly maintained and the Policy Board has judged that no policy actions are necessary at this point. Meanwhile, Sato called on the government to steadily promote measures to pursue fiscal health with a view to ensuring the credibility of the country fiscal management, as the government plans to draw up a fiscal reform plan by the end of this month. On the bank commitment to achieving an inflation target of 2 percent in about two years since it launched the easing measures in April 2013, Sato said it is a nonbinding target and that a delay in the timing of reaching the goal would not be the essential problem. (news.financializer.com). As reported in the news.