Early Tuesday morning in Asia, Bank of Japan (BOJ) Governor Haruhiko Kuroda crossed wires, via Japan’s Asahi news, while turning down fears of ETF selling.
In his latest speech, BOJ Chief Kuroda said, “Will buy ETFs as needed within JPY 12 trillion cap,” before adding, “won't end ETF purchases or unload BOJ’s ETF holdings.”
The Japanese central banker also said to keep the 2.0% inflation target while pursuing “Easy policy to achieve price goal at the earliest date possible.”
Additional comments...
- Japan's economy likely to improve as a trend thanks to recovery in external demand, effects of easy policy and govt stimulus package newspaper.
- Natural for government to deploy fiscal stimulus flexibly, though Japan must also maintain market trust over medium- long-term fiscal health.
- BOJ will support via easy policy various entities' efforts toward reform as japan faces challenges in post-covid world.
- Financial institutions must recognise what risks their portfolios are exposed to regarding climate change.
FX implications
USD/JPY pays a little heed to the news while staying firm around 109.80, the highest since June 2020, teases late last week.
Read: USD/JPY closes in on multi-month highs as 10-year US T-bond yield climbs above 1.7%
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