BoJ’s Ueda: BoJ's massive stimulus had negative side-effects

Negative rate and bother tools under BoJ's massive stimulus had boosted demand by pushing down real interest rates, but had side-effects too such as on JGB market function.

Preliminary wage negotiation outcome tends to be revised down but even so, we thought final outcome would be fairly strong number.

Consumption was showing some weakness but we were able to confirm strength in capex, when asked why boj decided to end negative rates in March not April..

We know some small firms might struggle to hike wages, but overall, small, midsized firms' profits are improving.

As we end our massive stimulus, we will likely gradually shrink our balance sheet, and at some point reduce JGB purchases.

At present, we have no clear idea on timing of reducing JGB buying, scaling back size of balance sheet.

We will take plenty of time examining how to reduce BoJ's ETF holdings.

In event of reducing BoJ's ETF etf holdings, BOJ will come up with guidelines taking into account market developments at the time

In selling BoJ's ETF holdings, we will do so in a way that minimises losses on BOJ, disruptions in markets.