BOJ’s Kuroda: Will patiently continue powerful monetary easing

Bank of Japan (BOJ) Chief Haruhiko Kuroda reiterated that they “will patiently continue powerful monetary easing” while addressing the post-monetary policy decision press conference.

Additional quotes

Continues to provide easy monetary environment for firms by shifting focus from covid emergency relief to wide-ranging needs.

Must be vigilant to financial, FX market moves and their impact on japan's economy, prices.

Won't hesitate to ease monetary policy further if necessary.

Closely watching financial, FX market moves.

Weak yen impact varies on different sectors.

Market players are paying attention to interest rate differentials.

Yen weakening is one-sided.

Rapid yen moves make it difficult for companies to set business plans, negative for Japan's economy.

There are speculative moves behind weakening yen.

Yen weakness is negative for non-manufacturing companies and mid-, smaller companies.

Boj will closely watch financial market moves, impact on economy, prices, with govt.

Closely coordinating with govt while paying attention to yen weakening's effects on economy and prices.

CPI will undershoot 2% from next fiscal year onwards.

CPI will undershoot 2% from next fiscal year onwards.

Q2 GDP growth is not yet at pre-pandemic levels.

Japan economy still on path towards recovery.

Recent sharp weak yen, existing raw material inflation have pushed up consumer prices.

Higher raw material prices can push down economy by worsening terms of trade.

Appropriate to maintain current powerful monetary easing to support economy.

Won't raise interest rates for time being.

Market reaction

The Japanese yen is finding fresh demand on the BOJ Chief’s comments, as USD/JPY eases off fresh 24-year highs at 145.41 to trade at 145.23, at the time of writing. The pair is still up 0.82% on the day.