BOJ's Kuroda: BOJ is unlikely to raise rates for "quite some time"

Omkar Godbole FXStreet Contributor

The policy normalization remains a distant dream for the Bank of Japan (BOJ).

Governor Haruhiko Kuroda said in an interview published over the weekend that "there is no thought about raising rates for quite some time" and the recent steps to make policy more flexible are not aimed at laying the groundwork for an eventual exit from its massive stimulus

Key quotes (source: Yomiuri Shimbun)

As long as uncertainties remain, the commitment is to maintain the current low rates.

Kuroda sees the planned consumption tax hike in October 2019 as one source of uncertainty.

The economy has improved and the labor market is tight. If you think according to common sense, (inflation) would reach the mid-one per cent level in 2020. Barring some huge change that stops this upward move, I believe we'll reach it

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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