[BOJ PRESS CONFERENCE] BoJ Governor Ueda says will patiently continue monetary easing with decided new measures; Will not hesitate to take additional easing measures if necessary; Getting gradually closer to achieving price target

POLICY

• Will not hesitate to take additional easing measures if necessary.
• BoJ decided to add flexibility to YCC.
• Today's steps came partly as a result of rising US long-term rates.
• Today's decision was aimed at making YCC operation more flexible amid extreme high uncertainties around the economy and financial markets.
• Wanted to tweak YCC before side effects increased, considered FC as part of potential side effects.
• Possibility remains low for monetary policy to fall behind the curve.
• Today's decision was partly aimed at preventing financials market volatility, including FX volatility.
• Don't have preconceived notion of order of exit from YCC or NIRP.
• Will continue both YCC and NIRP until we can foresee the achievement of inflation target.
• Long-term neutral rate is an interest theme, and BoJ has made various analyses, but will not elaborate this time.

BONDS

• Does not see yields rising significantly beyond 1% (Bloomberg)/ Does not think long-term rates will come under pressure to exceed 1%. (Reuters)
• Possible to conduct additional emergency bond-buying at 10yr yield levels under 1%.
• One side-effect of fixed-rate purchase operations was volatility in financial markets.
• Can contain speculative moves in market with flexible market operations.
• Will allow more flexibility when it comes to non-speculative market moves based on fundamentals.
• Says practically speaking, it would be difficult for BoJ staff to ascertain whether day-to-day rise in long-term yields in speculative.

FX

• Important for currencies to move stably reflective fundamentals.
• Closely working with government and monitoring the situation on FX. 
• FX could affect policy if it impacts price outlook.
• Overseas interest rate trends have been dominant factor in recent FX moves.

INFLATION

• Expects inflation to slow in FY25.
• Main reason for inflation outlook overshoot vs July are longer-than-expected effects price pass-through and rising crude prices.
• Not in a situation to foresee sustainable and stable price increases.
• Will closely scrutinise the economy and price situation by examining wages and prices.
• Will carefully monitor if wage-price spiral takes hold.
• Strength of inflation and wages still not sufficient.
• It's true that the likelihood of inflation outlook's realisation is slightly higher but not in a situation that we can foresee it with full confidence.
• Getting gradually closer to achieving price target. (Reuters)/Certainty of achieving price target rising a little. (Bloomberg)
• Will scrutinise effects of government policy on inflation outlook once it is announced.
• Can anticipate a certain level of wage hikes next year.
• Next spring's wage talks will be an important factor. 
• Says there are budding signs that the "norm" of wage price rigidity is changing but still distant from levels considered with 2% inflation.

BROADER ECONOMY

• Japan's economy is recovering moderately.