BOJ’s Kuroda: Have not changed view that weak yen is positive for economy as a whole
Bank of Japan (BOJ) Governor Haruhiko Kuroda expressed his view on the recent depreciative move in the yen and its implications on the economy and the central bank’s monetary policy outlook.
Key quotes
Desirable for fx to move stably reflecting economic fundamentals.
Sharp yen moves could have negative impacts on economy.
Has not changed view that weak yen is positive for economy as a whole.
Weak yen's impact is uneven depending on sectors, corporate sizes.
Recent yen weakening has been quite sharp.
Recent sharp yen weakening could have impact on corporate profit plans.
Excessive weak yen or yen's rapid weakening can have more negative impact, but weak yen is basically positive overall.
Japan's rising prices due to energy prices.
Appropriate to continue monetary easing.
As Japan’s energy mostly relies on imports, global commodity rally has only negative impact unlike a weak yen.
Too early to debate exit from stimulus policy.
Market reaction
USD/JPY is off the highs but holds gains above 126.56 on these above comments. The spot continues to benefit from higher Treasury yields.
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.
