BOJ’s Kuroda: Need to continue with large-scale easing
|In addition to previous comments concerning the Bank of Japan’s (BOJ) monetary policy outlook, the BOJ Governor Haruhiko Kuroda offered additional statements to better forecast the Asian central bank’s next move.
Key quotes
If govt were to ramp up fiscal spending, the fiscal, monetary policy mix will have a bigger positive effect on the economy than when fiscal or monetary steps are taken individually.
More issuance may be meaningful to drop in yields.
Need to continue with large-scale easing.
Japan's inflation far from target.
Don't see BOJ’s ETF, J-REIT buying as causing problems in markets.
Fx and stock markets are relatively stable, which is desirable, but that doesn't mean BOJ needs to change its policy in any way.
Now expect global economy to pick up around first half to middle of next year.
Not thinking of timing any further BOJ easing with govt's decision to ramp up fiscal spending.
FX implications
The market‘s reaction to the comments has been positive amid the broad risk-on sentiment fuelled by increasing hopes of the US-China trade deal. USD/JPY takes the bids to 108.82 by the press time of pre-European session on Tuesday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.