BoJ Deputy Gov Wakatabe: benefits of yield-curve control outweigh side effects

The Bank of Japan (BoJ) Deputy Governor Masazumi Wakatabe was out on the wires in the last hour, saying that the biggest reason for low inflation is the deflationary mindset.

Key quotes:

   •  Low inflation despite falling unemployment rate suggests there is still some labour market slack that remains.
   •  BoJ has taken comprehensive steps to ease policy.
   •  Would have to consider additional easing if weakness in price momentum becomes entrenched.
   •  Benefits of yield-curve control policy outweigh the side effects.
   •  No need to adjust monetary policy now. 
   •  Would have to adjust policy if there is a risk of returning to deflation.