BOJ’s Kuroda: Japan's economy remains under pressure from state of emergency curbs

“Japan's economy remains under pressure from the state of emergency curbs,” the Bank of Japan (BOJ) Governor Haruhiko Kuroda said in his speech on Wednesday.

Additional comments

Japan's economy likely to recover on rising external demand, govt and monetary support.

Must be vigilant to global market developments, overseas economies.

Japan's economy likely to resume a sustainable growth path as rising income supports spending.

Expects Japan’s capex to rise more clearly ahead as corporate profits improve.

Job, income conditions remain weak but have avoided sharp worsening thanks in part to govt support.

Uncertainty regarding Japan’s economic outlook high, biggest risk is pandemic development and impact on domestic, overseas economies.

Risks to Japan’s economy skewed to downside.

Impact of cellphone fee cuts on Japan’s CPI likely temporary.

Don't expect japan to return to deflation but price developments warrant attention due to uncertainty on companies' price-setting behaviour.

BOJ will mull extending covid-relief programme with eye on impact of pandemic.

BOJ will ease policy further without hesitation if needed.

BOJ’s policy approach is to mitigate cost of easing in normal times so it has room to respond flexibly to abrupt changes in economy, price, financial developments.

Market reaction

USD/JPY is keeping its range around 109.00, as the yen remains unperturbed by Kuroda’s comments while a broad US dollar bounce underpins the spot.

The spot is currently trading at 108.96, up 0.07% on the day.