BoJ's Kuroda: BoJ will continue its ultra-loose monetary policy

Reuters reports that the ''Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank was closely watching the impact currency moves could have on the economy, warning of 'very high uncertainty' on the outlook due to rising commodity prices''

"We won't hesitate to take additional monetary easing steps as necessary" with an eye on risks, Kuroda said in a speech to a quarterly meeting of the central bank's branch managers.Kuroda also repeated the BOJ's policy guidance that the bank expects short- and long-term interest rate targets to "move at current or lower levels."

Key notes

Japan's economy showing some signs of weakness but picking up as a trend.

Japan's economy likely to recover as impact of covid-19, supply constraints eases.

Japan's core consumer inflation moving around 2%.

Uncertainty regarding japan's economy is very high.

Japan's financial system stable as a whole.

Must be vigilant to impact of financial, currency market moves and their impact on japan's economy, prices.

BoJ will maintain ultra-loose policy to stably achieve 2% inflation target.

BoJ stands ready to ease policy further without hesitation as needed.

Japan's consumer inflation likely to accelerate pace of increase.

Japan's financial conditions are easing as a whole.

Expects short-, long-term policy rate targets to remain at current or lower levels.

USD/JPY update

USD/JPY bulls have stepped in at the start of the week as the greenback remains firm despite the bearish close on Friday. The pair is trading bid by some 0.5% to 136.75 so far in the Tokyo sesison.