BoJ’s Kuroda: Will need to consider further easing if necessary
More comments flowing in from the BoJ Governor Kuroda, via Reuters, as he continues to speak on the inflation and employment outlook.
Key Points:
It has become clear it will take some time to change public inflation expectations.
Markets have been volatile since the start of the year, close coordination with overseas policymakers is important.
Abenomics is necessary and is the appropriate mix of economic policies to defeat deflation.
Not sure if the jobless rate will continue at that level.
Japan is out of the deflationary situation.
But have yet to declare exit from deflation just yet.
As with other central banks, BOJ believes achieving 2% inflation target is key to achieving price stability.
It will take time to change the deeply rooted deflationary mindset
That mindset is a reason why prices are not rising strongly
Prices remain weak but is maintaining momentum towards 2% inflation target
2.4% unemployment rate was 'a little surprising'.
Will adjust policy if needed, while scrutinizing whether economy maintaining momentum to hitting target.
Will need to consider further easing if necessary.
Inflation is likely to reach 2% around fiscal year 2019.
Not saying that the BOJ will never change its yield targets.
Inappropriate to talk about stimulus exit now given the distance to the 2% price target.
Will communicate exit with the market when the time is right.
Will maintain the current policy for now as the momentum is good.
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.
