BOJ’s Kuroda: Not aiming for specific currency level
|Having said that the recent rapid yen weakening is negative for the economy, Bank of Japan (BOJ) Governor Haruhiko Kuroda added that they are not aiming for a specific currency level.
Further comments
Don't see limit in yield curve control.
No change to idea that yield curve control strongly supports economic recovery.
Rapidly rising US, European long-term yields have had substantial impact on Japan’s yields, making YCC necessary.
Forex fluctuations may not have immediate impact on capex.
FX moves may not have bad big impact on business confidence as Japan’s capex remains solid.
Don't see need for further monetary easing now.
Raising implicit cap for 10-year JGB yield target would weaken economy.
Not thinking raising cap on BOJ’s long-term yield target above current 0.25% as it may result in higher yields, weaken effect of monetary easing.
Closely watching the US economy and prices.
No country executes monetary policy targeting currency.
Recent currency, rate moves have had substantial impact on economy, prices, requires close attention.
BOJ has been, will be able to create appropriate yield curve under YCC, using tools such as fixed-rate bond buying operation.
Must achieve 2% inflation target by supporting Japan’s economic recovery.
Market currently focuses on interest rate differentials as factor behind currency moves, yet the factor can vary depending on economic, financial trends.
Believe we can create appropriate yield curve conducting various operations despite speculations.
Theoretically, YCC can be maintained even with rising overseas yields by ramping up bond buying, carrying out fixed-rate operations.
Market reaction
USD/JPY was last seen trading at 134.38, up 1.65% on the day.
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