BOJ’s Kuroda: Chance of Japan’s consumer inflation accelerating sharply very small
“Chance of Japan’s consumer inflation accelerating sharply is very small”, Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Thursday.
Additional quotes
Must continue monetary easing bit longer as inflation short of 2%.
Wage growth holds key for Japan to see inflation sustainably accelerate near 2%.
Can't say how widening US-Japan interest rate differentials would affect forex moves.
Monetary policy direction of central banks does not necessarily have to be in same direction.
True that households find it hard tolerate price rises.
Commodity price fluctuations tend to be temporary so inappropriate to address them with monetary policy.
Prolonged monetary easing helped boost corporate profits, put end to Japan’s deflation so not entirely bad for financial institutions.
Premature to debate exit from easy policy during my remaining term as BOJ governor.
Expect wages will gradually rise at a faster pace.
We are not engaging in any specific debate on exit policy, no chance we will do so during my remaining term as BOJ governor.
Market reaction
USD/JPY is currently trading near-daily highs of 115.65, up 0.13% on the day. The spot is gaining ground amidst a minor rebound in the US Treasury yields alongside the dollar.
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.
