BOJ’s Kuroda: Inflation expectations are moving sideways

Dhwani Mehta FXStreet

The Bank of Japan’s (BOJ) Haruhiko Kuroda said that the Inflation expectations are moving sideways while speaking at its post-monetary policy meeting press conference scheduled on Friday.

Additional comments

Japan's economy is picking up as a trend.

Will ease monetary policy further without hesitation as needed.

It will take a while for coronavirus pandemic to subside.

Face-to-face service businesses have been hit particularly hard.

Fed could begin tapering given solid economic recovery, rising inflation.

Need to continue monetary easing to achieve 2% inflation even after virus crisis is contained.

Climate change has a very large impact on economy, price, financial developments in medium- to long-term.

Climate change scheme is a new approach aimed at supporting banks' efforts to achieve greener strategy.

BOJ will announce overall measures related to climate change at appropriate timing after July policy meeting.

Won't rule out buying green bonds in future.

BOJ is not solely targeting purchasing green bonds.

USD/JPY reaction

USD/JPY is retreating towards 110.00 amid a fresh leg down in the US Treasury yields and comments from the BOJ Governor. However, the downside appears cushioned, as the US dollar remains broadly stronger.

USD/JPY trades with modest losses around 110.00 mark

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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