BOJ’s Kuroda: Now is time to keep yield curve stably low as COVID-19 still affecting economy

Dhwani Mehta FXStreet

Commenting on the Bank of Japan’s (BOJ) yield curve control framework, the central bank’s chief Haruhiko Kuroda said that “now is time to keep yield curve stably low as COVID-19 still continues to affect the economy.”

Key quotes

Japan's inflation rate is slightly positive when stripping away temporary factors such as effect of crude oil price falls, govt travel discounts.

FX rates moves on various factors such as economy, interest rate differentials.

Having joined discussions at G20, believe global consensus is to avoid premature withdrawal of fiscal support.

Rises in the US treasury yields reflect hopes of economic recovery, don't think it will cause big problems ahead.

Don't think it's necessary, appropriate to widen band around BOJ’s long-term rate target.

BOJ must buy ETFs flexibly when its presence is needed to address sharp widening of risk premia.

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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.

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