BoJ Gov Kuroda: Japan's consumer inflation likely to accelerate near 1% towards the middle of next year

Ross J Burland FXStreet

The Bank of Japan's governor, Haruhiko Kuroda, stated the following comments:

Japan's economic recovery is delayed somewhat.

Stagnation in Japan's consumption has been prolonged.

Exports, output hovering on a weak note.

Service consumption to remain under pressure from covid, temporary slowdown in exports, output likely to continue.

The mechanism for Japan's economic recovery remains in place.

BoJ will take additional easing steps without hesitation as needed, with an eye on the pandemic's impact on the economy.

Japan's economic recovery is likely to become clearer in 1st half of next year.

Japan's economy is likely to recover levels seen in 2019 in 1st half of next year.

Demand for precautionary liquidity has eased substantially.

Corporate funding strain appears to have become limited to sectors still suffering from weak sales, small and medium-sized firms.

BoJ will maintain powerful monetary easing as inflation is projected to miss the 2% target for time being.

Japan's consumer inflation is likely to gradually accelerate to around 1% towards mid-next year.

Inflation expectations of households, firms rebounding, wage growth accelerating mainly among sectors suffering from labour shortages.

There have been no market reactions to the comments that followed data earlier in the day as follows:

Japan's GDP translated into a quarterly drop of 0.8%

About Kuroda

Haruhiko Kuroda, is the 31st and current Governor of the Bank of Japan. He was formerly the President of the Asian Development Bank from 1 February 2005 to 18 March 2013.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD falters ahead 1.3400

GBP/USD has advanced just past the 1.3400 barrier before losing some momentum on Tuesday. Cable has since edged lower to trade around 1.3380 as investors turned more cautious following reports that Iran had targeted commercial vessels attempting to transit the Strait of Hormuz.

EUR/USD treads water near 1.1440

EUR/USD struggles to gather bullish momentum on Tuesday, trading in a tight range around 1.1400. The pair lacks clear direction amid the equally vacillating price action in the US Dollar, all against the backdrop of renewed tensions in the Strait of Hormuz and a sell-off in Asian technology stocks.

Gold picks up pace, retargets $4,200

Gold bounces off earlier lows and hovers around the $4,180 region per troy ounce on Tuesday. Fresh geopolitical effervescence lend support to inflation concerns and seem to limit the yellow metal’s bull run for now.

Bonk extends correction after $20 million hack from BonkDAO treasury

Bonk remains under pressure, trading below $0.0000044 after losing over 10% in the previous day. Monday’s correction occurred as Bonk Decentralized Autonomous Organization announced a governance exploit that resulted in the theft of $20 million worth of BONK tokens from its treasury.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance, arguing that the current world demands more flexibility.