Bank of Japan (BOJ) Governor Haruhiko Kuroda is on the wires now, via Reuters, making some comments on the impact of inflation on the economy and the central bank’s monetary policy stance.
Key quotes
Cost-push inflation not accompanied by rising wages won't lead to sustainable achievement of 2% inflation.
BOJ seeks to achieve situation where inflation rises moderately in tandem with increase in corporate profits, wages.
Cost-push inflation lacking wage growth will hurt households' real income, corporate profits, and have negative impact on Japan’s economy.
Inappropriate to tighten policy, withdraw stimulus even if energy, commodity costs push up inflation.
Japan's inflation expectations, wage growth remain subdued, which means cost-push inflation will have negative impact on economy.
Cannot say for sure Russia won't default on its debt.
Expected fed rate hike likely won't push Asia emerging economies into serious trouble.
USD/JPY reaction
USD/JPY is seeing a fresh bid around 115.50 on these above comments, also as the US dollar is recovering ground amid a tepid risk tone.
The spot is higher by 0.16% on the day.
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