BOJ’s Kuroda: Japan’s economy expected to recover ahead, USD/JPY nears 133.00
Bank of Japan (BOJ) Governor Haruhiko Kuroda is out on the wires now, via Reuters, expressing his outlook on the Japanese economy.
Key quotes
Japan’s economy is improving as a trend.
Japan’s economy expected to recover ahead.
Exports, output continue to increase as a trend although there are some weakness due supply constraints.
Japan’s core CPI is likely to keep hovering around 2% for the time being before slowing its pace of increase as the boost from energy dissipates.
Unwinding monetary stimulus hastily could hurt capex and domestic demand.
BOJ policy should not be tied to the governor's term, it should be decided at each policy meeting.
Understand there are various views on whether 'households' acceptance of price hikes' was accurate wording.
Companies won't be able to raise prices unless consumers becoming accepting to such moves.
I may have emphasised a single data too much in yesterday's speech, BOJ isn't measuring households' activity with this data alone.
Market reaction
USD/JPY keeps pushing higher above 132.00, as the yen extends its selling momentum in absence of any mention of the exchange rate value by the BOJ Chief in his latest comments.
At the time of writing, the pair is up 0.63% on the day at 132.74, fresh two-decade highs.
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.
