BOJ’s Kuroda: BOJ will continue to pursue easy monetary policy to hit 2% target at earliest

Dhwani Mehta FXStreet

Bloomberg reports headlines by the BOJ Governor Kuroda, delivered during his interview with Bloomberg TV overnight.

Headlines:

Doesn't see any constraints to BOJ policy

BOJ has 40% of JGBs, that means 60% are in the market

FX rate can affect inflation in the short term

We see a gradually rising inflation rate

When the yen rises due to global geopolitical risks, it complicates policy

Our inflation forecast is based on continued improvement in jobs and closing of the output gap

We're confident we can meet our inflation target in mid-2018 but that assumes stable yen

We will stick to yield-curve control, that means JGB purchases could rise or fall depending on market conditions

Real economy is better than we anticipated a few month ago but inflation still sluggish

Japan's output rising as a trend, domestic demand also firm

Japan's economy maintaining momentum toward hitting BOJ price target but that momentum not necessarily strong

No clear upward shift in price momentum detected so far

BOJ will continue to pursue easy monetary policy to hit 2 percent target at earliest date possible

"We stick to yield curve control. Under yield-curve control, purchases may decline or increase but we think the current pace of purchases and monetary base increase will continue for some time."

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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