Japan’s PM Kishida: BOJ must make efforts to achieve 2% inflation target stably and sustainably

Dhwani Mehta FXStreet

Japanese Prime Minister Fumio Kishida said Thursday that he expects the Bank of Japan (BOJ) to make efforts to achieve the 2% inflation target stably and sustainably.

Kishida, however, said that specific monetary policy is up to the BOJ to decide.

Further comments

Sharp yen moves undesirable.

Don't think there is gap in view on fx between FinMin Suzuki and BOJ Kuroda.

Weak yen is positive for exporters, firms with overseas assets, though it hurts households, some businesses via higher import costs.

BOJ Kuroda has said weak yen is good for economy as a whole, though he also talked about its demerits.

On Wednesday, Japan's government called on the Bank of Japan (BOJ) to strive for achieving its 2% inflation target in a "sustainable and stable fashion,” Reuters reports, having seen a draft of its long-term policy outline.

Market reaction

USD/JPY is up 0.07% on the day, currently trading at 127.40, capitalizing on the renewed US dollar demand.

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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