BOJ’s Kuroda: Government, central bank corporate funding support is exerting its effects

Dhwani Mehta FXStreet

The government and the Bank of Japan’s (BOJ) corporate funding support is exerting its effects, the central bank Governor Haruhiko Kuroda at the post-monetary policy meeting press conference scheduled on Friday.

Additional comments

CPI is expected to stay negative for time being.

Government, the BOJ corporate funding support is exerting its effects.

March review to examine effects of large-scale monetary easing and impact on financial mediation.

Won't hesitate to ease further if needed.

March review to also focus on effective, flexible policy while paying attention to side effects.

Not mindful of any specifics for the review at this point.

Need to pay close attention to side effects of monetary easing.

Will continue to closely watch the US fiscal, economic policy.

Will continue to closely watch coronavirus infection situation in Japan, overseas.

No need to tweak framework of yield curve control.

The longer the state of emergency stays, the stronger the impact on economy.

Yield curve control is functioning properly.

Excessive declines in super-long yields are not desirable.

Inflation expectations are weakening at present.

Excluding temporary factors core CPI is in positive territory.

Market reaction

USD/JPY keeps its range near two-week lows of 103.33 on Governor Kuroda’s presser. The spot was last seen trading at 103.39, down 0.13% on the day.

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.

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