|

BoJ’s Kuroda: BoJ will seek to exit accommodative policy if inflation reaches 2%

More comments crossing the wires from the BoJ Governor Kuroda, as he continues to speak on the monetary policy outlook.

BoJ will, of course, seek an exit from the massive stimulus programme if inflation reaches 2 pct.

When BoJ seeks an exit from easy policy, the yield curve will steepen but that alone won't pull financial institutions out of structural problems.

No reason to believe that the Bank of Japan must normalize policy just because the Fed is doing so. 

Author

Dhwani Mehta

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.

More from Dhwani Mehta
Share:

Editor's Picks

Cardano: Whale accumulation, van Rossem hard fork update support recovery prospects 

Cardano trades slightly lower around $0.161 after a mild rejection the previous day. Despite the price pullback, on-chain data show that wallets holding ADA tokens are accumulating, signaling growing confidence among large investors. In addition, improvements to derivatives metrics and the upcoming van Rossem hard fork update could provide a catalyst for ADA’s potential recovery.

2.25% and holding: Why the BoC, not the barrel, moves the Loonie

The Bank of Canada held its policy rate at 2.25% on Wednesday and published a Monetary Policy Report whose entire disinflation path rests on one assumption: Brent falls to $75 and stays there. That assumption was finalised on Friday and was stale before Governor Tiff Macklem reached the podium.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.