BOJ’s Kuroda: Japan's consumer price inflation likely to rise

Dhwani Mehta FXStreet

Bank of Japan (BOJ) Governor Haruhiko Kuroda made some comments on consumer inflation in his appearance on Tuesday.

Key quotes

Consumer prices likely to rise, but this caused – push inflation seen weighing on economy longer-term.

Nominal wages may rise significantly, but recent rise in energy, food prices could push down Japan’s real wages.

Premature to speak about exit from BOJ’s easy policy, including what to do with its ETF buying.

BOJ will continue to buy ETFs as needed, as part of its monetary easing programme.

In the event BOJ decides to reduce ETF holdings, it will do so in a way that minimizes BOJ’s losses and causes least disruption to markets.

Market reaction

USD/JPY is trading close to fresh six-year highs of 120.07, tracking the renewed upside in the US Treasury yields across the curve. Markets now price in a 50bps hike in the May Fed meeting.

The spot was last seen trading at 119.89, up 0.36% 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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