1 Min Read
TOKYO (Reuters) - The Bank of Japan will continue to pursue necessary monetary policy steps to stabilise prices, while keeping an eye on how they affect its financial health, a senior central bank official said on Tuesday.
A recent slowdown in the BOJ's bond buying is due largely to the fact U.S. Treasury yields have stabilised and are exerting less upward pressure on Japan's long-term interest rates, Masayoshi Amamiya, the central bank's executive director overseeing monetary policy, told parliament.
"It's hard to say now how a future exit (from the BOJ's ultra-loose policy) could affect its financial health as that would depend on the pace of short-term rate hikes and what the yield curve would look like at the time," he said.
Reporting by Leika Kihara; Editing by Chris Gallagher