BOJ’s Kuroda: Japan's economy likely to improve moderately as a trend

“Japan's economy is likely to improve moderately as a trend,” the Bank of Japan (BOJ) Governor Haruhiko Kuroda said in a scheduled speech at the Japan Business Federation's Board of Councillors Meeting, in Tokyo.

Additional quotes

There is high uncertainty for economic outlook as it will likely take time for vaccines to reach broad sectors of society.

Don’t expect japan to return to deflation but watching price moves carefully given uncertainty over economic outlook.

Don't see need to change yield curve control in upcoming examination of our policy

BOJ will check whether various tools, including operation of YCC and asset purchases, are exerting intended effects.

If there is room for improvement in making our policy more effective and sustainable, we will put such steps into place.

As battle with COVID-19 persists, we must take steps to make YCC sustainable.

We must address any rigidity that may have emerged from prolonged easy policy.

BOJ must be ready to act flexibly, take effective steps as needed against possible changes in economic, price, financial developments.

Continued ultra-low rates has had negative impact on financial institutions' profits.

BOJ’s EFT, JGB buying has affected market functions, such costs must be contained as much as possible.

The focus of our policy examination is not just to contain cost of easy policy.

BOJ hopes to conduct policy examination in a forward-looking manner, find ways to more effectively achieve economic and price stability while mitigating the side-effects.

Market reaction

USD/JPY trades listless near 103.55, unable to benefit from the risk-on market profile, as the US dollar remains broadly weaker.