BOJ's Kuroda: Don't expect inflation to stay around 2% next year, and the year after
Bank of Japan (BOJ) Haruhiko Kuroda said in a statement on Thursday, not to expect inflation to stay around 2% next year and the year after.
Additional quotes
BOJ must maintain easy policy for time being but when right time comes, it will debate exit strategy and lay out its plan to public.
When debating exit strategy, key will be how to raise rates and reduce BOJ’s balance sheet.
When exiting easy policy, BOJ will likely combine rate hike and balance sheet reduction though specific means, timing will depend on economic, price, financial developments at the time.
BOJ has ability to execute smooth exit from easy policy, though it won't be easy.
US rate hike may not necessarily lead to weaker yen via outflow of funds from Japan, if it affects American stock prices.
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.
