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BOJ’s Kuroda: Won't hesitate to ease monetary policy further if necessary

Bank of Japan (BOJ) Chief Haruhiko Kuroda maintained its pledge to ease the monetary policy further if required while addressing the post-monetary policy decision press conference.

Additional quotes

Risks to economy skewed to the downside for time being but will be balanced thereafter.

No change to policy stance aiming to achieve stable, sustainable inflation regardless of ex-PM Abe’s death.

Must be vigilant to financial, currency market moves and their impact on Japan’s economy, prices.

Possible to achieve inflation target with wage growth.

Will continue to support Japan’s economic growth from monetary front.

Important for forex to move stably reflecting economic fundamentals.

Recent rapid yen weakening is negative for economy.

Massive monetary easing has had substantial effect of boosting economy, prices so far.

Important for profitable companies benefited from weak yen to ramp up capex, raise wages, to strengthen virtuous cycle from income to spending.

Will coordinate closely with govt to watch impact of forex moves on economy, prices.

Rapid yen weakening undesirable also because companies may hold back on making investments.

Will need to continue monetary easing because price hikes will not be sustained.

Passing on of price hikes is broadening through economy.

Biggest impact of monetary easing is stimulus to economy by lowering real interest rates.

BOJ must maintain monetary easing to support economy, expecting wages to grow further.

Market reaction

USD/JPY is showing little to no reaction to these comments, trading flat at 138.25, at the time of writing.

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.

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