BOJ’s Kuroda: Japan's economy is picking up as a trend

Anil Panchal FXStreet

“Japan's economy is picking up as a trend,” said Bank of Japan (BOJ) Governor Haruhiko Kuroda during a press conference following the monetary policy decision announcement on early Friday morning in Europe.

Additional comments

Will further ease monetary policy without hesitation as needed.

The CPI in Japan is expected to rise sharply.

Ukraine situation could affect global economy from various channels.

Ukraine situation could push up inflation globally.

Ukraine situation could affect Japan's economy indirectly through supply chain disruptions to its companies.

Cost-push inflation will push down Japan's economy in the long term by reducing corporate profits, real household income.

CPI will rise clearly as effect of lower cellphone service fees tapers off.

Desirable for currencies to move stably reflecting fundamentals.

Appropriate to continue current easing.

No change to basic structure that weak yen is positive for japan's economy.

Japan's core CPI may rise around 2% largely due to rise in oil products for some time after April.

Closely watching effects of higher import costs on Japan's economy.

Recent spike in import costs are caused by global commodity price rises rather than weak yen.

Recent rise in prices is cost-push inflation and not positive for Japan's economy.

Change in fx not just leading to higher import prices but also higher export prices.

No need to worry about stagflation in Japan, US and Europe.

There is not much correlation between interest rate differentials and currencies.

No need for Japan to raise rates at all.

USD/JPY remains on the front foot towards 119.00

Following the comments from BOJ Governor, USD/JPY prices extend the early Asian run-up towards refreshing the daily top near 118.80. The yen pair initially rose on the US dollar’s rebound while paying a little heed to the BOJ inaction.

Read: USD/JPY: Poised to reclaim 119.00 as BOJ keeps interest rate unchanged at -0.1%

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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