BOJ’s Kuroda: BOJ will guide monetary policy without preconception
Reuters reports the latest comments from the Bank of Japan (BOJ) Governor Kuroda, as he throws some light on the central bank’s monetary policy outlook.
BOJ can cut rates, ramp up asset buying and accelerate monetary expansion if needed.
No change to our view we can combine, enhance easing tools depending on economic and price developments.
BOJ will guide monetary policy without preconception looking carefully at various risks.
New forward guidance reflects its stance of guiding policy with more focus on chance of future easing.
Expects pickup in overseas economies to be delayed by around six months compared with previous projection.
Don't expect overseas growth to slow further.
Must remain vigilant to downside risks.
Must be vigilant to fact financial markets are becoming more sensitive to risks.
Must carefully watch how sales tax hike affects consumer sentiment.
Meanwhile, the Yen remains unfazed by the above dovish remarks from the BOJ Chief, as it regains some ground following poor Asian PMI readings, with USD/JPY off the 108.78 highs to now trade near 108.65 region. The downside remains cushioned by the recent US-China trade optimism.
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.
