BoJ's Kuroda continues to reinforce low rates strategy by BoJ

Joshua Gibson FXStreet

At a branch manager's meeting today, Bank of Japan (BoJ) Governor Kuroda is continuing to push the BoJ's current policy stance of low interest rates forever.

Key highlights

The Japanese economy is continuing to expand moderately, and the current pace of expansion is expected to continue into the future.

Consumer inflation continues to move around/near the 1% region, and Japan's financial system is remaining stable.

The BoJ will continue to maintain QQE and manage the yield curve for "as long as needed" in order to achieve their 2% inflation target, and will continue to expand the monetary base until consumer inflation manages to hold above 2%.

Short- and long-term interest rates will be kept at their current "very low" levels for as long as necessary, and the BoJ will only adjust policy when its absolutely necessary to help the economy's momentum to reach its target.

The BoJ will continue to keep both hands on the wheel in the face of global market risks.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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