BOJ’s Kuroda: BOJ’s bond purchases are not hampering market functions

Further comments are hitting the wires from the Bank of Japan (BOJ) Chief Kuroda, via Reuters, as he continues to speak on the central bank’s monetary policy and JGB operations.

Key Quotes:

Important to ensure market trust in medium to long-term fiscal conditions.

BOJ’s bond purchases are not hampering market functions.

Govt primary budget balance target is helping ensure market confidence in public finances.

BOJ bond purchases aimed at achieving price stability target, not financing govt debt.

Corporate stance on wages, price-setting and labor-saving investments are among factors for inflation to struggle to rise.

Won't hesitate to ease further if momentum towards inflation target comes under threat.

There's ample room for further easing at present.

Will weigh costs and benefits if BOJ were to ease further.

Not thinking of lowering 2% inflation target.

Meanwhile, USD/JPY is least affected by the above comments, as it meanders near daily lows of 109.45, having hit a high of 109.60 in early Asia. The pair is on the back foot due to the slow declines in the S&P 50 futures.