BOJ’s Kuroda: Appropriate monetary policy, management of output gap needed for reaching 2% price target

Dhwani Mehta FXStreet

Additional headlines crossed the wires from the BOJ Governor Kuroda, via Reuters, as he extends his speech in Parliament today.

Headlines:

No comment on desirable level of FX

FX policy is the finance ministry's responsibility

Monetary policy is for stabilising inflation

Appropriate monetary policy, management of output gap needed for reaching 2% inflation target

Various factors affect FX, not just interest rates. But long-term US rates are seen on an upward trend.

There is a time lag in fx effect on inflation; weak yen will help raise prices in FY2017

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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