|

BOJ’s Kuroda: Will closely watch US economic, price outlook and impact on Japan in guiding monetary policy

Additional comments after flowing in from the Bank of Japan Governor Haruhiko Kuroda, as he continues to speak in the parliament.

Sharp rise in US inflation partly due to base effect of last year's sharp decline in oil prices.

Developments regarding pandemic and its impact on Japan’s economy, prices highly uncertain.

Will closely watch US economic, price outlook and impact on Japan in guiding monetary policy

If some challenges are overcome, stable coins could become widely-used payments and settlement means.

BOJ’s massive stimulus spurred growth, turned output gap positive but that did not immediately lead to rises in wages, prices to appropriate levels.

It's taking time to push up inflation but that does not mean monetary policy is ineffective.

 it's possible to prop up inflation with monetary policy though it is taking time due to adaptive nature of Japan’s inflation expectations.

Day-to-day purchases of ETFs depends on market developments, based on guidelines set by BOJ’s policy-setting meeting.

BOJ’s aggressive ETF buying has been effective in mitigating market instability.

Won't comment on specific guidelines on BOJ’s ETF buying as doing so could have unintended effect on markets.

Author

Dhwani Mehta

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.

More from Dhwani Mehta
Share:

Editor's Picks

AUD/USD recovers toward 0.7000 amid improving mood

AUD/USD is firming up toward 0.7000 in Asia on Tuesday, helped by improving market mood. A pause in the US Dollar rebound also aids the pair's upside. However, geopolitical risks and caution ahead of AI tech earnings report could limit the pair.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold bounces back, remains depressed

Gold (XAU/USD) drifts lower on Tuesday, down for a third consecutive day, but losses remain limited. Market participants are watching Oil prices and the Middle East for direction.

Crypto Today: Bitcoin, Ethereum, XRP tick lower amid mixed ETF flows

Bitcoin is trading above $81,000 on Tuesday, aligning with a lethargic tone in the broader cryptocurrency market. Altcoins, including Ethereum and Ripple, reflect Bitcoin’s lock-step price action, trading below $2,400 and $1.30, respectively.

Markets at a turning point: Bitcoin, Gold, FX and Tech react to a heavy macro week

The new trading week opens with a mixed but revealing picture across global markets. Indices, commodities, FX, tech stocks, and cryptocurrencies are all sending one message: risk appetite is alive, but it is cautious, selective, and highly sensitive to macro signals.

The US Dollar fell. Gold didn't rally. That tells you everything
Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.